EURUSD remains neutral. Overview for 31.08.2022

EURUSD reached parity yesterday; investors are monitoring external background.

The major currency pair is looking stable on Wednesday. The current quote for the instrument is 0.9984.

So far, EURUSD has managed not to move far away from parity. Investors are keeping a close eye on the news. What is extremely important for the Euro is that starting today and through 2 September, gas transfer via Nord Stream-1 to Europe is put on hold due to compressor pack maintenance. Earlier, investors were preparing for volatility in spot gas prices because of this, and this new price surge might have become a trigger for already high inflation in the Euro Area. However, yesterday it was announced that European gas storage levels surpassed 80%, which is a pretty good number to come into the upcoming heating season. As a result of this, the Euro didn’t get any stress and it’s good news. 

At the moment, market players are expected to switch their attention to the monthly statistics on the US labour market. The first report, ADP Employment Change, is scheduled to be released later today. Considering that in his speech at the Jackson Hole symposium Jerome Powell mentioned a possible slump in the labour segment, investors should be ready for any scenario. 

The currency market is unlikely to be extremely volatile in anticipation of important news.