EURUSD is consolidating in anticipation of new catalysts. Overview for 02.04.2019

The European currency remains weak against the USD, but bears are not in a hurry. 

The major currency pair is trading inactively on Tuesday as market players are clearly saving their strengths in anticipation of new drivers. The current quote for the instrument is 1.1204. 

The USD got a little bit weaker last night, because investors were inspired by progress in trade talks between The USA and China. This issue remains a major market risk: the more complicated the talks are getting, the higher the demand for the USD as a “safe haven” asset. However, the talks have been rather inactive recently, thus not affecting the global picture too much. This morning, the USD went on the attack again. 

The numbers that may seem interesting for market players will be published not earlier than late in the afternoon. However, no reports from Europe that may significantly influence EURUSD behavior are scheduled on Tuesday. 

The USA will report on the Durable Goods Orders in February. The indicator is very important for understanding what is going in the country’s economy. It is a leading indicator, which describes the current situation in the industry, because it takes into account only the goods with periods of use less than three years. The indicator is expected to decrease by 1.1% m/m after adding 0.3% m/m in January. 

Transport goods have significant influence on the report, that’s why one should check the Core Durable Goods Orders, which may expand by 0.3% m/m after losing 0.2% m/m the month before. This is the answer to the question why the first indicator is expected to reduce: companies can’t buy airplanes and other expensive vehicles in large volumes on a regular basis. 

The stronger the number, the better for the USD. However, one should remember that the indicator tends to be very volatile.