EURUSD is reaching stability after having several volatile trading sessions earlier this week.
The major currency pair is trying to recover and reach stability after this week’s fluctuations. The current quote for the instrument is 1.2088.
The American statistics published yesterday were pretty good. The weekly report on the Unemployment Claims showed 473K after being 507K the week before and against the expected reading of 487K.
So, the labor market continues recovering and improving whenever possible providing there are conditions for that. More and more American people got vaccinated against the coronavirus and that’s quite good for producing systemic immunity and beating the pandemic. At the same time, one can see improvements in consumer demand, which boosts the economic activity in the country on different levels.
There is a certain possibility for further improvement of the above-mentioned indicator but it’s rather circumstantial. Several American states say that they may close the federal program for jobless benefits because they want to inspire manufacturers and enterprises to hire more workers. As long as people get extra money, they don’t feel the necessity to apply for a job. So far, these are just the intentions of some states, but if there is a precedent for that, the statistics will surely improve.
Inflation pressure continues growing and the latest reports confirm it. For example, the PPI in the USA added 0.6% m/m in April after expanding by 0.1% m/m in March ad against the expected reading of 0.3% m/m. At the same time, the Core PPI showed 0.7% m/m in April, the same as the month before, although it was expected to be 0.4% m/m.
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.