On Monday, the major currency pair remains exhilarated.
EURUSD improved early in the week and seems to continue its growth. The current quote for the instrument is 1.1311.
Demand for the USD as a “safe haven” asset significantly dropped yesterday: market players turned out to be too optimistic about the recovery dynamics of the Chinese economy after the coronavirus pandemic. Another thing that influenced the situation was strong macrocosmic reports from the USA.
The statistics published yesterday showed that the ISM Non-Manufacturing PMI improved up to 57.1 points in June after being 45.4 points the month before and against the expected reading of 50.0 points. The actual reading is the highest since February. Everything that is above the psychologically-crucial level of 50 points indicates optimism. The tertiary sector suffered much more than the other during the coronavirus pandemic, so its recovery is an extremely positive signal.
Excellent statistics positively influenced investors’ attitude to risks, so the USD found itself out of the running.
In addition to that, the European currency was supported by other reports published by the Euro Area earlier. The Retail Sales showed +17.8% m/m in June after losing 12.1% m/m in May. Here, the actual reading was also better than market expectations, which implied +15.0% m/m.
In general, investors’ attitude to risks remains positive, thus making EURUSD more confident.
Orgin: RoboForex
