The USD has corrected. Overview for 05.03.2020
On Thursday, the major currency pair moved away from two-month highs; right now, it is correcting.
EURUSD is falling a little bit on Thursday afternoon, which seems quite logical. The current quote for the instrument is 1.1129.
Market emotions caused by the Fed’s unexpected decision to cut the rate calmed down and were followed by a thorough analysis. Nothing critical happened, although it should be admitted that the decision to urgently revise the rate without any warnings sent shockwaves across the global financial community. The American economy remains stable and the numbers confirm this fact. However, the rate was cut and market players will have to deal with it.
The statistics published yesterday showed that the ADP Non-Farm Employment Change was 183K in February after being 209K in the previous month and against the expected reading of 183K.
The ISM Non-Manufacturing PMI in the USA went from 55.5 points in January to 57.3 points in February, although it was expected to reduce down to 54.9 points. It’s a positive signal for the US economy, which means that consumers are ready to spend money.
Later in the evening, the USA is scheduled to publish revised reports on the Nonfarm Productivity and the Unit Labor Costs in the fourth quarter of 2019. Also, investors will be offered reports on the Factory Orders for January, which may worsen a little bit, and the Unemployment Claims, which may show 213-215K, a rather neutral reading for the USD.