The main currency pair quickly recovered after a collapse and now is ready to consolidate.
EURUSD recovered its weekly losses and rebounded. The current quote for the instrument is 1.1700.
Like we said before, the media frenzy about political turmoil in Italy will calm down as soon as investors realize that the outcome of this story is far from over. It refers to possible elections, which may be held at the end of August or September. It means that there will be more political “turbulence” in Italy and the previous reactions of investors were too excessive. By now, EURUSD has somehow recovered and reached stability.
In fact, it was the statistics that counted against the USD. The ADP Non-Farm Employment Change was 178K in May after being 204K the month before and against the expected reading of 190K. There is no direct correlation between the ADP reading and the NFP report, which is scheduled for Friday, but the first report still provides investors with some thoughts and ideas what to expect from the second one.
Apart from this, investors’ attitude to the American currency was ruined by the US GDP report in the first quarter 2018. Over this period of time, the country’s economy growth was 2.2% q/q, although it was expected to increase up to 2.3% q/q. In the fourth quarter 2017, the indicator expanded up to 2.9% q/q, that’s why the actual reading seems at least unimpressive.
The White House’s target for the annual GDP is 3%. In the future, investors will surely monitor this indicator’s behavior very carefully, because a lot of things depend on it, including Donald Trump’s doubtful reputation.
Orgin: RoboForex
