The Euro continues to retreat. Overview for 11.05.2017

The Euro continues to retreat. Overview for 11.05.2017

The main currency pair has been sold for the fourth consecutive trading session; the American statistics supports the USD.

The EUR/USD pair has been trading to the downside since the beginning of the week and doesn’t seem to stop falling. The first reason was that investors closed long positions after the “French elections drama” ended, and then the decline continued reflexively. The current quote for the instrument is 1.0850; this week’s high was at 1.1023.

According to today’s statistics from the USA, the weekly report as of May 6^th on the Initial Jobless Claims decreased up to 236K against the expected number of 245K. The week before, the indicator was 238K. The employment market is one of the few stable sectors in the USA, which are fixed in the uptrend.

The Core PPI added 0.4% m/m (1.9% y/y) in April against the expected reading of 0.2% m/m (1.7% y/y). The PPI expanded by 0.5% m/m, which is better than expected. On YoY, it added 2.5%, although it was expected to increase by 2.2%.

The producer prices are growing, which meaты that the consumer prices are rising as well. Judging by the information on salaries and employment, one may think that most Americans can afford spending money as in the past, however, it’s pretty obvious that the impact on consumers is increasing.

RoboForex Analytical Department