The Euro is retreating. Overview for 04.12.2019

04.12.2019

The major currency pair is falling on Wednesday afternoon; investors are trying to escape risks. 

The external background is getting worse, thus making EURUSD retreat – a possible trade agreement between the USA and China is postponed as Trump said that “the trade deal could wait until after 2020 election”. The current quote for the instrument is 1.1070. 

The final report on the Euro Area Services PMI showed 51.9 points in November after being 51.5 points the month before. The reading wasn’t expected to change in comparison with the previous estimate, that’s why it was pretty good. 

The same indicator for Germany went from 51.3 points in October to 51.7 points last month, while in France in decreased from 52.9 points to 52.2 points over the same period. In Italy, the indicator plummeted. In the meantime, the Spanish reading turned out to be quite stable. 

Later in the evening, the USA is starting to report on its labor market in November. First of all, it’s the ADP, which is expected to show 137K after being 125 in the previous month. There is no direct correlation between the ADP and the NFP, but it may provide insight into market sentiments. 

Another report scheduled for today is the ISM Non-Manufacturing PMI, which may go down from 54.7 points in October to 54.5 points in November. Here it might be interesting to take a closer look at the components, because they may help to see the reason for the current pullback.

Meanwhile, the USD is looking rather stable because it is in demand as a “safe haven” asset.
 

Attention!

Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex bears no responsibility for trading results based on trading recommendations described in these analytical reviews.