In the middle of the week, the main currency pair is slowly falling, although the US statistics were rather weak.
EURUSD is moving downwards on Wednesday, which is quite unusual, because the numbers published by the USA were not very positive. The current quote for the instrument is 1.1606.
The Euro Area didn’t publish any reports worth paying attention to. There was one, the M3 Money Supply, but investors didn’t respond to it. However, the USA reported on several macroeconomic indicators, which are more or less important, and investors are expected to react. First of all, the Durable Goods Orders, which lost 0.6% m/m in May after decreasing by 1.6% m/m the month before and against the expected reading of -0/9% m/m. The Core Durable Goods Orders decreased by 0.3 m/m over the same period although it was expected to add 0.5% m/m.
Another report, the Wholesale Inventories, expanded by 0.5% m/m in May, which is better than both previous and expected readings.
“Trade wars” went on the back burner, but probably not for long: on July 6th, the USA are planning to announce new sanctions to Chinese investments in the American technology sector. It may revive the demand for the USD as a “safe haven” asset and help it to get stronger unless the Euro finds some drivers to reach stability.
At the same time, everyone perfectly well realizes that China will respond immediately and introduce the same sanctions, at least, or even add some more in order to jeopardize America's interests. One thing is for sure: this story won’t end very quickly.