On Thursday, the major currency pair is falling; the Euro is not in demand.
After pretty volatile Wednesday, EURUSD is trading a little bit downwards on Thursday morning. The current quote for the instrument is 1.1332.
Today’s economic calendar has a lot of numbers. In the morning, Germany published the final report on the CPI in January. The first estimation was -0.8% m/m and the second one didn’t change anything. The German economy did slow down significantly and the country’s policymakers admitted it. However, another confirmation of the problem didn’t make the Euro happier.
In the afternoon, Germany is scheduled to report on the Manufacturing PMI and Services PMI in February. Both reports are preliminary and shows slight decline. A bit later, the Euro Area is going to report on the same indicators. The first indicator may turn out to be rather neutral, while the second one is expected to improve a bit. If both readings match market expectations, give or take, EURUSD is unlikely to pay much attention to them.
Today is Thursday, which means that the USA will publish the weekly Unemployment Claims report. This time, it is expected to be 228K after being 239K last week. However, it’s been a while since investors really paid attention to the volatility of this report. The US labor market is stable, this is why slight fluctuations only confirm that the sector is active.
One thing that is really worth paying attention to is the Durable Goods Orders in December in the USA. The report covers the goods that are used for more than three years and may be considered as some kind of leading indicator for the industrial sector. The components include transport (aircraft and motor vehicles) and capital goods. The higher the reading, the better for the USD.
Another report to be published by the USA in the evening is the Existing Home Sales in January. The indicator is expected to rise up to 5.01M, which is better than the month before. Strong numbers will also be in favor of the American currency as it shows consumers’ activity in the housing sector (with a slight delay) along with the sector stability in general. As a rule, this sector is very sensitive to any distresses or slowdowns in the economy, that’s why strong numbers will confirm the economic system stability.
