At the end of the week, euro/dollar is consolidating. Current quotations are 1.1735.
The weekly report of unemployment claims in the USA, published yesterday, showed a certain decline (to 375 thousand from 387 thousand previously). It was as forecast.
Investors still care a lot about all signals from the labor market or price parameters. Excessicely good results can push the Fed to reduce stimulation. This still supports the USD quite a bit. In essence, it now bases its position on two issues: all-time high inflation and a stable labor market.
The US PPI in July remained in an uptrend, growing by 1.0% m/m against forecast growth by 0.6% m/m. Base PPI also grew by 1.0% m/m, twice as high as expected.
It might be that inflation in the USA remains high because stable demand based on noticeable economic recovery is still influencing the whole supply chain. The Fed traditionally claims that prices will not remain high for long, yet it has not commented on the fresh statistics.
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.