Fundamental analytics

EUR / USD is traded heavier as USD dollar gains

EUR / USD pair is trading under pressure on the background of increasing pressure from the dollar.

A strong decline in Europe and Asia equities increases the demand for US dollar, which investors view as a defensive asset. On this background, the European currency is somewhat weaker with obvious problems in the economy and high political risks.

This morning in Germany data on production orders were published, which turned out to be higher than the forecast values, a fact of 0.3%, a forecast of -0.4%, last month 0.1% (revised downwards from 0.3%), stopping the development local downward wave. But the main influence on the market will provide not the European currency, but USD dollar, which expects the publication of a large number of economic reports.

Today, fresh monthly ADP data on employment will be presented. Experts predicts a decline from the previous 227K to 196K, which may have moderate pressure on the US currency in anticipation of the publication of the main report on the labor market, which traditionally will be released on Friday.

Later on, US data on the trade balance, the volume of industrial orders, PMI of the non-manufacturing sector and a bunch of other data will become known, that will determine the further movement vector of EUR/USD. In the coming months, statistics from the United States will have a very strong impact on trading, since the further monetary policy of the Fed will depend on the dynamics of the main indicators. On the background of recent statements by the Fed chairman, many investors have changed their expectations regarding the rate of interest rate increase in 2019, which negatively affected the dollar exchange rate. But some representatives of the Fed, who spoke this week, did not rule out maintaining the current rate of rate increase if the main economic indicators were in line with the forecast values.

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