The USD got more expensive. Overview for 10.08.2020

10.08.2020

EURUSD fell a little bit due to the American statistic but not for long. 

The major currency pair is rather inactive on Monday morning while investors are collecting the latest data to decide on where to move today. The current quote for the instrument is 1.1790.

So, market players have already “processed” the statistics on the US labor market published last Friday. The Unemployment Rate improved up to 10.2% in July after being 11.1% in June and against the expected reading of 10.5%. However, two more percent and ebullience may fade to be replaced by hard work to correct mistakes. 

The NFP Change showed 1.763M in July against market expectations of 1.53M. In the previous month, the indicator was 4.791M and the problem is that the recovery will take much time. 

The Average Hourly Earnings in the USA added 0.2% m/m in July, which is much better than expected. Last month, the indicator showed -1.3% m/m and that was painful. 

Basically, the numbers were pretty positive but it can be clearly seen that it’s getting more and more difficult for the labor market to show stable results because the stimulus measures taken by the government haven’t been implemented completely for the sector yet. Despite rather cheap loans, companies still find it difficult to obtain credits and use them to create new jobs because they have no idea what possible prospects might be. As long as the entire world is unstable and the coronavirus pandemic is still here, any progress will be extremely slow.

Attention!

Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex bears no responsibility for trading results based on trading recommendations described in these analytical reviews.