The main currency pair continues growing; new import duties introduced by the USA hurt the national currency.
On Monday morning, EURUSD is keeping its momentum and moving upwards. The current quote for the instrument is 1.1770.
First of all, the USD is suffering from newly-introduced import duties on a wide range of Chinese goods. The program started on July 6th and will include two stages, the first of which is already in effect. China is planning to do the same, but it hasn’t been announced yet when exactly.
The statistics published last Friday also didn’t give the USD a boost. Of course, the June NFP report is out of the question, because it expanded by 213K against the expected reading of 195K. However, other reports were not so good and rose more questions than they answered.
The Unemployment Rate in the USA went from 3.8% in May to 4.0% in June, although no one expected it to change, especially upwards. The Average Hourly Earnings also expanded in June, by 0.2% m/m against the expected growth by 0.3% m/m. Investors’ response to these numbers was negative, although the numbers can’t be called stressful: decline in some of them can be easily explained by a seasonal factor. No matter which way you look at it, the US labor market remains strong and this fact is confirmed by monthslong observations.
However, right now investors are treating the USD in a very cautious way and it may continue for several more days.