The primary currency pair looks weak on Friday. The current EURUSD exchange rate stands at 1.0734.
European political issues, particularly the imbalance in France, are exerting significant pressure on the euro. Furthermore, the softer-than-expected producer price statistics in the US are adding a layer of uncertainty to the US dollar dynamics.
The US Producer Price Index for May remained at 2.2% year-on-year, falling short of the expected 2.5% increase. On a month-on-month basis, the index declined by 0.2% against a previous rise of 0.5%.
The number of jobless claims in the US has taken an unexpected turn, soaring to 242,000. This figure, which stood at 229,000 the previous week, was the median average value. This unpredictability in the employment sector is a critical factor that the market is grappling with, and it cannot discern what is happening.
For now, the currency market is favouring the US dollar.