The Euro continues retreating. Overview for 02.04.2020
On Thursday afternoon, the major currency pair is falling against the current background.
EURUSD is losing weight due to the same fundamental background. The current quote for the instrument is 1.0920.
The statistics published yesterday showed that the ADP Non-Farm Employment Change was -27K in March against the expected reading of -150K. Of course, the indicator was expected to decline but the fact that it just fell instead of plummeting is very positive.
We’d like to remind you that there is no direct correlation between reports from the ADP and the NFP (scheduled to be published on Friday), but the first report can really provide insight into what is happening in the labor market before they publish the second one.
The ISM Manufacturing PMI in the USA also weakened in March but just a little bit, from 50.1 points to 49.1 points. Market expectations were much worse, 44.9 points, that’s why the actual reading turned out to be pretty good. In March, the manufacturing capacity utilization rate in the USA was quite high but the April report is highly likely to show a significant decline.
Later in the evening, the USA is going to report on the Unemployment Claims, which might as well show numbers similar to the previous week. Market expectations imply 3.6M after the previous reading of 3.28M. It’s the entire service industry, which found itself out of work without consumers. However, EURUSD already knew about this, that’s why no dramatic reactions are expected.