EURUSD reached stability; the asset remains inside its strategic sideways channel. The major currency pair is slowly rising, but it can be clearly seen that investors have no idea of what to do next. The current quote for the instrument is 1.0183. On one hand, investors got a very clear signal that the stability of the US labour market allows the FOMC to continue tightening its monetary policy. This factor provided the “greenback” with much support. On the other hand, market players are trying to escape risks that are already priced in. They are sick and tired of being afraid and want some movement.
The Unemployment Rate in the US dropped to 3.5% in July after being 3.6% the month before, although it wasn’t expected to change. The NFP showed significant improvement and was 528K against the expected reading of 250K. The Average Hourly Earnings gained 0.5% m/m, which is more than expected, 0.3% m/m.
In other words, businesses have enough safety margin in terms of jobs. It means that nothing prevents the Fed from raising the rate by another 50 basis points in September. The Consumer Credit in the US showed $40.2 billion. It looks like consumers are expecting loans to be more expensive in the future due to possible rate hikes and are trying to benefit from the situation right here and now. As for fresh economic statistics, today’s trading session is going to be calm. However, the external background is rather negative, so the demand for the “greenback” as a “safe haven” asset might go up.
