On Monday, the main currency pair may continue consolidating close to the current levels in anticipation of new statistical reports.
EURUSD started this week with a further consolidation near last Friday’s levels. The current quote for the instrument is 1.2323.
Last Friday, the USA published a lot of February numbers relating to the labotr market, which increased the market volatility and made investors go back and forth. for example, the Unemployment Rate in the USA remained at 4.1% in February against the expected reading of 4.0%. However, it was probably the most neutral number of all that were published.
The Non-Farm Employment Change added 313K in February against the expected reading of +205K. In January, the indicator increased by 239K and it was a very good result. Now, one can see that the positive momentum continues and even improves. In order for the labor market to improve, the NFP has to add 100-120K every month, that’s why the current reading is surely positive.
However, the devil is in the detail, as usual. Another report, the Average Hourly Earnings, expanded only by 0.1% m/m in February after adding 0.3% m/m the month before and against the expected reading of +0.2% m/m. This is not the most important indicator, but, as it already happened several times in the past, the report turned out to be the one investors focused on the most, because the slow growth of salaries may prevent the American regulator from increasing the benchmark rate.