EURUSD remains under pressure amid high demand for "safe haven" assets. The major currency pair remains weak. The current quote for the instrument is 1.1103. As it usually happens early in the month, the economic calendar is very eventful and offers a lot of data. For example, the CPI in the Euro Area showed 5.8% y/y in February after being 5.1% y/y the month before. The Core CPI was 2.7% y/y against 2.3% y/y in the previous month. The pricing environment may be the factor that will force the ECB to revise the benchmark interest rate.
The ADP Non-Farm Employment Change showed 475K in February after being 378K in January. It’s funny that the January data was revised upwards, from -301K to +509K – it’s been the biggest revision in many years.
As a result, employment remains quite stable but the sector is still experiencing some problems with labour supply. The reason is the pandemic. Last night, Fed Chairman Jerome Powell spoke to Congress. He said that the regulator was ready to raise the rate by 50 basis points if inflation remained high. The indicator is expected to reach its peak this year and then reach stability. As a matter of fact, investors got clear signals of what the Fed is planning to do, and it’s good for the “greenback”.
