After updating its highs, EURUSD is correcting quite fast; the “greenback” has been strengthening for the fourth consecutive trading session.
The major currency pair continues retreating on Monday. The current quote for the instrument is 1.2170.
The fact that the Democratic party won the majority in the Senate makes “greenback” enthusiasts happy. It’s rather unusual because the democrats are actively lobbying (and might approve it in the case of the majority) the stimulus package to support the country’s economy. It appears that a possible positive influence of the package results beats some minor issues, such as an increase in the money supply.
The labor market statistics published by the USA last Friday showed that the Unemployment Rate remained unchanged at 6.7% in December against the expected reading of 6.8%. The Non-Farm Employment Change was -140K over the same month, which was a rather unpleasant surprise because the indicator was expected to add 60K after expanding by 336K the month before.
One may assume that the NFP dropped due to a seasonal factor when the tertiary industry was cutting jobs intended for Christmas and New Year.
At the same time, the Average Hourly Earnings added 0.8% m/m in December after expanding by 0.32% m/m in November and against the expected reading of +0.2% m/m. Probably, this positive report compensated for the weak NFP number a little bit but the increase in the indicator can be logically explained: due to fewer employees, companies managed to increase their salaries.
Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex bears no responsibility for trading results based on trading recommendations described in these analytical reviews.