The Euro reached the highest levels over a month and a half. Overview for 05.06.2019

Weakness of the American currency helps the major currency pair to rise quickly. 

On Wednesday morning, EURUSD remains “in the black” and continues its steady growth. The current quote for the instrument is 1.1261.

So, while delivering his speech yesterday, the US Federal Reserve Chairman Jerome Powell did mention a possibility of the benchmark rate cut by the regulator. Just as expected, he said that it would be possible due to trade wars, which were escalating significantly. As a natural result, the USD got under additional pressure. 

In the afternoon, some European countries and the Euro Area itself are schedules to report on the Services PMI for May. As a rule, market players don’t pay much attention to this minor report, but in case of surprising results, the volatility may increase. 

The Euro Area will publish the Retail Sales for April. The indicator may lose 0.5% m/m, which is not a great signal for the European currency. 

In the evening, the USA are going to report on the ISM Non-Manufacturing PMI for May, which is expected to improve a little bit. Most likely, the USD won’t notice the report. After that, there will be the Beige Book, a gathering of information on current economic conditions by each Federal Reserve Bank in its district. Usually, the report is published 2 weeks before meetings of the Federal Open Market Committee.

Also, the USA are starting to publish fresh numbers on the labor market for May. The first report is the ADP Non-Farm Employment Change, which is expected to drop. However, there is no direct correlation between the ADP and the NFP, that’s why today’s report may be used only as general information on the sector.