The Euro skyrocketed. Overview for 03.04.2019

The major currency pair started growing after three consecutive session of slow decline. 

On Wednesday afternoon, EURUSD is getting significantly stronger. The current quote for the instrument is 1.1239. 

Concerns of investors relating to contradictions in the trade talks between the USA and China are going down, thus decreasing their interest in “safe haven” assets. Another thing that helped the pair to rebound is strong numbers that came from China. 

On Wednesday afternoon, the Euro Area and several countries of it, such as Spain, Italy, France, and Germany, will report on the Services PMI. As a rule, this indicator has no significant influence on the currency market, unless it provides rather unexpected data. 

A bit later, the Euro Area will publish the Retail Sales in February. The indicator is expected to expand by 0.2% m/m after adding 0.9% m/m the month before. In this case, the decline is rather logical. The situation relating to the retails sales in the region remains rather mixed, although the labor market is stable and salaries are slowly growing. Nevertheless, consumers are in no hurry to spend much money and tend to be more money-saving, maybe due to instability in German and French economies and possible Brexit complications. The weak report will put pressure on the European currency.

In the evening, the USA will start publishing reports on the labor market in March. The first one is the ADP Non-Farm Employment Change. The indicator is expected to be 184K after being 183 in the previous month. There is no direct correlation between this report and the NFP to be published on Friday, however, it may be useful for understanding the overall picture. If the indicator continues improving, it will be good for the USD, although no strong responses should be expected. 

Also, the USA are scheduled to report on the Services PMI in March, which is expected to remain unchanged at 54.8 points. This indicator is neutral for the American currency. At the same time, there will be the ISM Non-Manufacturing PMI, which may fall down to 58.1 points after being 59.7 points in February, and this is the thing that may have negative influence on the USD.