EUR/USD juggles below 1.0700 as Eurozone Inflation and US Employment hog limelight EURUSD ECB Fed Inflation Employment
is gathering strength for fitting above the immediate resistance of 104.30 as the risk-aversion theme underpinned by investors is improving its appeal. The USD Index is stabilizing after a sell-off move as the context of the US debt-ceiling bill is fading after getting clearance from Congress. A recovery move in the USD Index has dampened the demand for US government bonds. This has led to a jump in 10-year US Treasury yields to near 3.67%.
In addition to US ADP Employment Change, ISM Manufacturing PMI will also remain in the spotlight. As per the preliminary report, Manufacturing PMI is expected to soften marginally to 47.0 vs. the former release of 47.1. A figure below 50.0 is considered a contraction in factory activities and the May month contraction could be the seventh consecutive contraction in the United States economy.
While New Orders Index that indicates forward demand is expected to drop to 44.9 from the prior release of 45.7. This could weigh severe pressure on the US Dollar.Considering the fact that, US consumer spending has remained resilient in April, labor market conditions are still healthy, and April inflation figures remained stubborn, Federal Reserve could continue tightening policy further to keep its side in full strength in the battle against sticky inflation.
Cleveland Federal Reserve Bank President, Loretta Mester, in an interview with Financial Times, cited “I don’t really see a compelling reason to pause — meaning wait until you get more evidence to decide what to do.” While Federal Reserve Governor Philip Jefferson said in a speech on Wednesday that pausing rate hikes at the next Federal Open Market Committee meeting would offer time to analyze more data before making a decision about the extent of additional tightening.
However, European Central Bank policymaker Madis Muller cited on Wednesday, “It is very likely that the central bank will hike by 25 bps more than once as core inflation is still stubborn.” Also,
Canada Latest News, Canada Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
EUR/USD skids firmly below 1.0700 amid upbeat USD Index, US NFP and Eurozone Inflation eyedThe EUR/USD pair has delivered a vertical fall and has slipped below the round-level support of 1.0700 in the Asian session. The major currency pair h
Read more »
EUR/USD rebounds as Eurozone inflation cools, US consumer confidence risesEUR/USD snaps five straight days of losses, rising some 0.30% in the North American session after a tranche of Eurozone (EU) economic data showed that
Read more »
EUR/USD steadies near 1.0700 as Eurozone inflation, ECB’s Lagarde and US employment data loomEUR/USD steadies near 1.0700 as Eurozone inflation, ECB’s Lagarde and US employment data loom – by anilpanchal7 EURUSD ECB RiskAversion Inflation Fed
Read more »
EUR/USD Price Analysis: Euro bears dominate below 1.0720 hurdle ahead of EU inflation, US employmentEUR/USD Price Analysis: Euro bears dominate below 1.0720 hurdle ahead of EU inflation, US employment EURUSD Technical Analysis Inflation Employment ChartPatterns
Read more »
EUR/USD rebound pauses around 1.0750, German inflation, US employment clues eyedEUR/USD struggles to extend the latest recovery from the lowest levels since March, grinding near 1.0735-30 amid early Wednesday morning in Asia, afte
Read more »
EUR/USD may be gently making its way to the March lows at 1.0515/0530 – INGEconomists at ING discuss EUR/USD outlook for the day ahead. Deteriorated Eurozone’s data to keep EUR/USD on the soft side “EUR/USD has quietly slippe
Read more »