The Euro retreated. Overview for 10.10.2022

The major currency pair remains weak. The current quote for the instrument is 0.9720.

The labour market statistics for September published by the US last Friday were quite positive. For example, the Unemployment Rate dropped to 3.5% after being 3.7% the month before, although it wasn’t expected to change. The Average Hourly Earnings added 0.3% m/m, the same as expected. On YoY, the indicator showed 5.0% after being 5.2% in August.

The Non-Farm Payrolls data showed 263K, which is better than expected, after being 315K in the previous month.

On one hand, the labour market is looking as stable as before, and it’s a good signal. On the other hand, salaries, a pro-inflation indicator, dropped a bit. However, this decline is too insignificant to prevent the US FOMC from continuing its aggressive monetary policy.

The Fed’s monetary plans remain the same – it’s too early to think of making a pause in rate hikes.

The benchmark interest rate is likely to reach 4% by the end of 2022. For the “greenback”, it’s a very positive vibe.