On Friday, the main currency pair is making another attempt to reach stability.
EURUSD is trying to reach stability close to its five months lows on Friday morning and there is a chance that these attempts may be successful today. The current quote for the instrument is 1.1815.
The statistics published by Germany this morning were good and, due to the lack of news from the USA, investors used these numbers a valuable driver. The Wholesale Price Index added 0.5% m/m in April after not changing in March and against the expected reading of +0.2% m/m. The Producer Price Index over the same period expanded by 0.5% m/m after adding 0.1% m/m the month before and against the expected reading of +0.3%.
The numbers published by the USA yesterday were quite positive. The Unemployment Claims was 222K (+11K) against the expected reading of 216K. Taking into account the fact that the last week’s number was the highest over many years, the current correction shouldn’t worry anybody.
The Philly Fed Manufacturing Index increased up to 34.4 points in May after being 23.2 points in the previous month and against the expected reading of 21.1 points. The CB Leading Index added 0.4% m/m, the same as expected. As a rule, investors don’t pay much attention to these indicator, but in the absence of other support, these numbers did just fine.
In fact, there is a completely different reason why the USD is feeling quite safe: the profitability of 10-Year Bonds continueы growing and helps the USD to stay afloat. Today, it’s 3.12% after being 3.11% yesterday.