EUR/USD is on a decline due to increased investor risk aversion.
The main currency pair is experiencing a downturn this Monday. The present exchange rate for EUR/USD is at 1.0550.
The global market is moving away from riskier options due to heightened political tensions in the Middle East. Such escalations primarily drive up the demand for safe-haven assets, with the US dollar being a major beneficiary.
The data released in the US on Friday indicates that the Federal Reserve has a strong basis for implementing further interest rate hikes. In September, the unemployment rate remained at 3.8%, contrary to the expected drop to 3.7%. Concurrently, non-farm payrolls saw a significant increase of 336,000 over the last month, surpassing the forecast of 171,000. Average hourly earnings also rose by 0.2% m/m, aligning with expectations.
These statistics provide ample grounds for the continuation of a tightened monetary policy.
Economic indicators suggest that the stringent monetary policy is having a positive effect. US consumer lending volume dropped by 15.6 billion USD, contrary to the anticipated increase of 11.7 billion USD.
Today, the significant entry in the macroeconomic calendar includes the Sentix investor confidence index report for the eurozone in October. A decrease in the indicator is anticipated.
The post The Euro Retreats: Overview for October 09, 2023 appeared first at R Blog – RoboForex.