The main currency pair is slowly retreating for the fifth consecutive trading session; the market is preparing for the Fed decision.
The EUR/USD pair is falling for the fifth trading session in a row and doesn’t seem to stop. The current quote for the instrument is 1.0539.
The most of the market’s attention is focused in the Fed meeting, which is planned for the next week. Approximately 85% of investors and economists are expecting the American regulator to increase the interest rate. And while the market is waiting, the statistics published by the USA is very positive.
Yesterday’s report on the ADP Non-Farm Employment Change in the USA in February showed that the indicator was twice as much as expected, 298K against 190K. the January reading was also revised, from 246K to 261K.
On Friday, the USA are going to publish official reports on the labor market. The unemployment level is expected to drop from 4.8% to 4.7%. There is no direct correlation between NFP and ADP, but after seeing the strong ADP reading, investors are expecting the same from NFP.
Today, the European Central Bank will have another meeting. Most likely, the meeting will be rather neutral: the time to change the rate hasn’t come yet and Europe is surely to let the USA Fed decide on the rate first before making its own decisions. Even with all things considered, there are some improvements in the Eurozone economy as they are easily visible to the unaided eye, and the ECB is definitely report on this.
RoboForex Analytical Department