EUR / USD pair
On Friday, the euro closed the day with a drop of just 5 points amid weak European economic indicators and strong US labor data. Perhaps, this effect is associated with the repositioning of large players for further purchases of the dollar. Germany's trade balance fell from 21.4 billion euros to 21.3 billion in January. Exports decreased by 0.5 percent while imports also decreased by 0.5 percent. Germany's industrial production fell 0.1 percent against expectations of growth by 0.5%. In France, Industrial production contracted by 2.0 percent compared to the forecast of -0.2 percent. In Spain, Industrial production fell from 5.8% y / y to 1.2% y / y.
The U.S data on employment shocked the market. In the non-agricultural sector, 313,000 jobs were created against expectations of 200,000 while the January data was revised to an increase of 39,000. The proportion of the economically active population increased from 62.7 percent to 63.0 percent, which kept the unemployment rate at the previous 4.1 percent against the forecast of a decrease to 4.0 percent. The average duration of the working week increased to 34.5 hours (from 34.3 hours). The average hourly wage increased by 0.1%, which was slightly less than the expected 0.2%.
The stock market took the data without any conventions with the S&P 500 added 1.74 percent. Oil gained 3.36%. The absence of a pronounced growth in the euro confirms our insight about the withdrawal of investors from risk.
This week, the US Treasury places 62 billion US dollars of long-term bonds and 96 billion US dollars of short-term bonds. The public debt by the 8th of March was equal to 20.957 trillion US dollars. The Treasury will undoubtedly take advantage of the convenient market situation and increase even more the supply of foreign debt instead of more demand for dollars.
The US Treasury places 62 billion dollars of long-term bonds and 96 billion short-term bonds this week. The Treasury will undoubtedly take advantage of the convenient market situation and increase even more the supply of foreign debt instead of more demand for dollars.
Only on Wednesday, there will be a significant economic data. The report on retail sales from the U.S. will be published in February with an expected 0.3 percent increase. We are waiting for the euro to fall in the range of 1.2210 / 30 and further towards 1.2090.
