EUR/USD stays firm above 1.14 on soft US Services PMI, weak jobs data
The EUR/USD advances on Wednesday, edging up over 0.42% as the Greenback erases Tuesday’s gains following the release of weaker-than-expected economic data from the United States (US). This, along with uncertainty fueled by the trade war, pushed the pair past the 1.1400 figure after hitting a daily low of 1.1356.
Late on Tuesday, US President Donald Trump signed an executive order that doubled steel and aluminum tariffs from 25% to 50%, effective June 4, for most countries, except the UK, which remains at 25%. In the meantime, traders brace for Trump’s call with Chinese President Xi Jinping later this week, according to the White House.
US data revealed that business activity in the services sector is slowing, according to the Institute for Supply Management (ISM). Earlier, ADP reported that private companies hired fewer people than projected in May, which disappointed investors and could be a prelude to a soft Nonfarm Payrolls report on Friday.
In the Eurozone, HCOB Services and Composite Purchasing Managers Indexes (PMIs) showed mixed results, with some measures expanding while the majority remained in contraction territory. This, along with last Tuesday’s inflation report in the bloc, could justify the European Central Bank (ECB) lowering rates by 25 basis points (bps) at the June 5 meeting.
The EU economic docket will report inflation figures on the producer side, along with the ECB’s decision and President Christine Lagarde’s press conference. Across the pond, the US schedule will feature Initial Jobless Claims for the last week and speeches by Federal Reserve (Fed) officials.
Source : Fxstreet
