The Euro is avoiding risks. Overview for 06.06.2022
EURUSD had to fall amid global risk aversion.
The major currency pair is consolidating on Monday. The current quote for the instrument is 1.0732.
The key reason for this decline is another global risk aversion. At the same time, the US bond yield is rising and providing the “greenback” with significant support. In addition, the statistics also ere in favour of the US despite being rather mixed.
For example, the Unemployment Rate in the US remained unchanged at 3.6% in May although it was expected to drop to 3.5%. The Average Hourly Earnings showed 0.3% m/m, the same as the month before, against the expected reading of 0.4% m/m. The Non-Farm Payrolls gained 390K after adding 436K in April against market expectations of 325K.
The latter report was pretty good. But will it be the reason for the US Fed to be more aggressive in its monetary policy? Very unlikely.
It appears that strong numbers from the labour sector provide the Fed with grounds not to stop its policy tightening and reduction of its balance.
For the “greenback”, it’s a stable factor of support.
Today’s macroeconomic calendar is almost empty, so market players will continue watching global risks and analysing the facts that they already have.
Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboMarkets bears no responsibility for trading results based on trading opinions described in these analytical reviews.
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