EURUSD stopped falling after some controversial statistics on the American labor market. Early in the first week of July, the major currency pair is consolidating after falling earlier. The current quote for the instrument is 1.1872. The statistics on the US labor market published last Friday turned out to be rather mixed. For example, the Non-Farm Employment Change showed 850K in June, which is much better than expected, after being 583K in May. However, this is where the good news ended. The Unemployment Rate rose from 5.8% in May to 5.9% in June, although it was expected to drop to 5.6%.
The Average Hourly Earnings showed 0.3% m/m, the same as expected, after being 0.4% m/m the month before. After this data was released, it became quite clear that it was very unstable, which means that the American regulator wouldn’t make any moves because the foundation for drawing serious conclusions was rather weak. As a result, the Fed’s plans to continue supporting and stimulating the country’s economy won’t change – the benchmark interest rate may be raised only twice before the end of 2023.
The Factory Orders expanded by 1.7% m/m in May, the same as expected, after losing 0.1% m/m in April. Today’s trading session is going to be very calm: the Euro Area will report on the Sentix Investor Confidence, which is expected to improve, while the USA is having a holiday and won’t publish any statistics at all.