EURUSD might have fallen deeper. Overview for 02.03.2022

EURUSD plummeted and this decline may not be over.  

The major currency pair plunged over the last 24 hours. The current quote for the instrument is 1.1087.

The EURUSD weakness is directly connected with the global risk aversion due to commodity and humanitarian crises. The “greenback” acts as a “safe haven” asset, which investors usually buy during turbulent periods on the market. 

The statistics and economic events scheduled for today are moved to the back burner. The key focus is on risk aversion and geopolitical concerns.

In the meantime, the US is starting to report on its labour market today. The first report is, as usual, the ADP Non-Farm Employment Change, which is expected to show 350K in February after being 301K in January. If the actual reading matches the forecast, there won’t be any significant movements in the USD. In case of a stronger report, the American currency might get support. 

There is no direct correlation between reports from ADP and NFP, but the former still provides a general impression of what is going on in the labour sector. And this impression might turn out to be quite positive.