This week the currency spent most of the trades in a lull. It is not surprising as we are approaching the end of the week where we expect the most significant releases and during the previous days traders just saved their strength.
The pair EUR/USD has recovered, responding to the US ADP data that did not meet their expectations. It turned out that it was created only 185 thousand jobs in the US private sector against the expected 215 thousand in July and 229 thousand in June. It undermined confidence in the dollar, especially in anticipation of the more labor market publication that is the NFP report. After all, if the employment level is unsatisfactory, it can erase all expectations about the possible Fed rate hike.
As a result, the dollar faced a sales wave against most rivals, but not for a long time. Shortly after the ADP report there was published the ISM US services sector activity index which in July rose up to 60.3 from the June's 56.0. It was quite enough to initiate the US dollar recovery against its major rivals. However, the dollar failed to maintain the leadership and strengthened only against the pound by the end of the day.
The Bank of England released its quarterly inflation report, the monetary policy last meeting minutes and delivered the current rate verdict. The BoE kept the interest rates unchanged at 0.50%.
According to the US Labor Department the initial jobless claims number became more than 3 thousand having reached to 270 thousand.Publication source