The Euro remains positive

02.07.2020 16:10
Consumer interest in the single currency remains good and steady, with the Euro / dollar hovering around 1.1280 after the release of the US labor market report for June. The Euro remains positive in the second half of the week after the US economy created 4,800,000 jobs last month, exceeding growth expectations by 3,000,000 and compared with 2,699,000 (revised from 2,509,000).
The unemployment rate fell to 11.1%, and the critical average hourly earnings-a measure of inflation through wages-fell 1.2% over the month and rose 5.0% over the past twelve months, both figures falling short of expectations.
So far, the Euro / dollar remains well supported around 1.1170. At the same time, investors continue to assess the gradual and steady resumption of the economy in Europe in relation to the likelihood of a second wave of infection (in line with new coronavirus outbreaks worldwide). A constructive view of the Euro, however, remains supported by improvements in some fundamentals in the region, which in turn is supported by constant (and large-scale) monetary stimulus from Central banks. In addition, good current account performance in the region also increases the attractiveness of the common currency. A break of 1.1348 will reach 1.1422 on the way to 1.1495. On the other hand, support appears at 1.1168, then 1.1147, and finally 1.1036 .

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