The Euro retreated to its two-week low. Overview for 07.05.2020

The major currency pair stopped falling on Thursday afternoon but is still looking pretty weak. 

EURUSD stopped weakening but is still looking rather shaky. The current quote for the instrument is 1.0800.

The statistics published in the afternoon showed that the German Industrial Production lost 9.2% m/m in March after adding 0.3% m/m in February and against the expected reading of -7.3% m/m. It’s not the worst number but, first of all, it’s a March reading and it will surely be much worse in April, and, secondly, this collapse won’t recover very soon.  

According to IFo, market expectations regarding German industrial production are the lowest since 1990 and only the pharmaceutical industry is looking a bit optimistic. All other areas have rather gloomy prospects. 

Later today, the USA is scheduled to report on the Unemployment Claims over the previous week, which is expected to reach some stability. This time, the indicator may show 3M against 3.839M last week, and that’s quite good. 

Also, on Thursday the USA is going to publish a preliminary report on the Nonfarm Productivity and Unit Labor Costs in the first quarter of 2020. The first indicator is expected to plunge by 5.4% q/q, while the second one may add 4.3% q/q. These reports are obviously rather mixed and it’s better to wait for the components. However, the key data on the labor market is scheduled for release on Friday and it may trigger some activity in EURUSD.