The USD is still in demand. Overview for 03.04.2020
On Friday, EURUSD continues sliding down while investors are interested in “safe haven” assets.
The major currency pair remains under pressure at the end of the first April week. The current quote for the instrument is 1.0813.
Weak numbers from the USA published yesterday didn’t change investors’ attitude to the greenback. On the contrary, the statistics even increased their demand is “safe haven” assets.
So, the weekly report on the Unemployment Claims skyrocketed up to 6.648M after being 3.3M (revised reading) the week before and against market expectations of 3.6M. It means that the great number of unemployed people from the services industry were followed the ones who worked in the manufacturing sector. Of course, the American labor market has enough jobs to quickly recover but it won’t happen right now or any nearest future. The next couple of weeks, while quarantine restrictions remain in effect, will see a lot more people losing their jobs.
The Factory Orders showed 0.0% m/m in February after losing 0.5% m/m in January and against the expected reading of +0.2% m/m. the March report is likely to show -0.1%-0.3% m/m, which would be rather logical due to the shutdown of many enterprises.
Today is a very important day for the American currency. Later in the evening, the USA is scheduled to publish more reports on the labor market. The key ones are the Non-Farm Employment Change, the Unemployment Rate, and the Average Hourly Earnings.