EURUSD is correcting a little bit but still remains quite strong.
Despite a slight correction, the major currency pair is looking pretty confident on the final Monday за April. The current quote for the instrument is 1.2107.
The most important thing right now is the attitude of global investors to risks – this is the factor that drives the Euro upwards. Nevertheless, the current market conditions are rather neutral for the USD: the US 10-year bond yield is above average and the numbers coming from the USA are quite good.
The statistics published by the Euro Area earlier demonstrated the increasing business activity in the region. For example, the Services PMI increased up to 50.3 points in April after being 49.6 points the month before. The Manufacturing PMI showed 63.3 points against 62.5 points over the same period of time. on the other hand, Germany didn’t impress: the same indicators showed 50.1 and 66.4 points in April after being 51.5 and 66.6 points respectively in the previous month.
The USA published quite strong readings. For example, the New Home Sales showed 1,021K in March after being 846K the month before. It seems like the real estate market completely recovered after a winter slump caused by the storm season and extremely cold weather.
The Manufacturing PMI from Markit improved up to 60.6 points in April after being 59.1 points in the previous month. The Services PMI also went up, from 60.4 to 63.1 points over the same period. Manufacturers are getting more active, which is good, but they still notice some difficulties with access to raw materials due to more active domestic demand.
Later today, market players should pay attention to a rather volatile report, the Durable Goods Orders, which is expected to show 2.5% m/m in March after being -1.2% m/m in February.