The main currency pair recovered after the statistics published last Friday and is ready for a new week.
On Monday, EURUSD reached stability after last week’s fluctuations. The current quote for the instrument is 1.1690.
Reports with May numbers on the US labor market were the most essential information for investors last Friday. Expectations were confirmed: the sector is doing fine and providing a lot of support to the US economy.
The Unemployment Rate went from 3.9% in April to 3.8% in May, although it wasn’t expected to change at all. The actual reading is the lowest over the last 18 years. Despite this positive piece of news, investors are a bit doubtful about the conditions on the labor market, which are being tightened too fast and may force the inflation boost. Apart from this, the strong labor market may become a real “backbone” for the US Federal Reserve in their plans to increase the benchmark rate. Although this possibility seems a bit funny, it really scares investors.
The Non-Farm Employment Change was 223K in May after being 159K (revised downwards) in the previous month and against the expected reading of 189K. The Average Hourly Earnings added 0.3% m/m in May after expanding by 0.1% /m the month before and against the expected number of +0.2% m/m.
No doubts, the reading are very strong and have a great potential, but they couldn’t provide really significant support to the USD, because the reports from the USA that were published earlier contained several questions, which still haven’t been answered.
Orgin: RoboForex
