The EUR/USD pair is falling, but not too much.
The main currency pair is retreating on Tuesday, with the current EUR/USD exchange rate at 1.0706.
The global foreign exchange market has a complex risk sentiment, favoring both the USD and the EUR.
The eurozone released some statistics on Monday. The final services PMI stayed at 47.8 points in October, indicating a contraction. The Sentix investor confidence index in the eurozone rose in November, reaching -18.6 points, beating the forecast of -22.2 points.
The US employment sector statistics in October showed the negative effects of a tight monetary policy on the economy. The unemployment rate rose to 3.9%, contrary to expectations. The average hourly earnings increased by 0.2 m/m, missing the consensus. Non-farm payrolls increased by 150,000, below the expected 178,000 and almost half of the previous month’s increase.
This is important because most of the working-age population works in this sector, which accounts for over 80% of the GDP. Employers reduced competition for workers and cut jobs in October, meaning they see lower economic demand or harder conditions for growth.
Today, the eurozone’s producer price index and the US trade balance are worth watching. However, overall risk aversion remains the main focus.
The post EUR/USD Pair Resists Decline: Overview for November 07, 2023 appeared first at R Blog – RoboForex.