The Euro updated its two-month lows. Overview for 04.02.2021
EURUSD remains under pressure due to complications in the Euro Area.
The major currency pair remains weak; it is moving downwards on Thursday morning. The current quote for the instrument is 1.2010.
Market players continue monitoring different forecasts for the GDP growth rate in both the USA and Europe, and the Euro Area is quite behind so far. After Germany published its GDP forecasts last week, which were revised downwards, investors are paying a lot of attention to any statistics from this country and projecting them onto the entire Euro Area. There is barely anything positive.
Yesterday, Germany reported on the Services PMI, which showed 46.7 points in January after being 46.8 points the month before. The same indicator for the Euro Area rose to 45.5 points after being 45.0 points over the same period of time.
The preliminary report on inflation in the Euro Area showed 0.9% y/y in January after being 0.3% y/y in December and against the expected reading of .06% y/y. The Core CPI added even more, 1.4% y/y, against market expectations of 0.9% y/y.
The latest statistics on the US labor market have been positive so far. The January ADP report showed 174K after being -78K in the previous month and against the expected reading of 48K.