The Euro remains under pressure. Overview for 17.04.2020
The major currency pair has been falling for the third consecutive trading session; market players are very cautious.
They continue selling EURUSD on Friday morning. The current quote for the instrument is 1.0834.
The statistics published by the USA yesterday showed that the American labor market started recovering a little bit. The Unemployment Claims was 5.245M after begin 6.615M the week before (revised) and against the expected reading of 5.35M. The service industry remains a job killer for many people, but the tendency is slowing down and that’s a very good signal.
The Building Permits in the USA was 1.35M in March, which is worse than the February reading of 1.45M, but better than market expectations of 1.3M. Another report, the Housing Starts, showed 1.22M after being 1.56M in February. However, everything is quite logical: when the country introduced restrictions on population movement in order to control the coronavirus outbreak, a lot of business processes were also put on hold.
There won’t be many numbers from the USA in today’s economic calendar, only the CB Leading Index for March, which is not expected to be impressive. However, in the afternoon, the Euro Area is scheduled to publish the final report on the Consumer Price Index in March, which earlier was 0.7% y/y and is not expected to change. The Core CPI may also remain unchanged at 1.0% y/y. A slump in European inflation is a result of lowering prices for energy commodities and a decline in consumption – it’s rather difficult to spend money when you’re staying at home, or worse, at a hospital. These factors remain in effect, thus indicating a high pressure on the CPI. It might count against the Euro.