EUR/USD 1.18674
0.125%
Gold 4770.37
-1.594%
Oil 61.708
-5.772%
USD/JPY 154.734
-0.014%
GBP/USD 1.37032
0.151%
GBP/JPY 212.040
0.137%
Browse More
  • English
  • 简体中文
  • 繁體中文
  • Tiếng Việt
  • ไทย
  • Indonesia
Subscribe
Real-time News
February 2nd - Iranian Foreign Ministry spokesman Baghae, when answering questions about negotiations with the United States on February 2nd local time, stated that details of the talks are currently in the decision-making stage, and any media speculation cannot be confirmed. The spokesman said that at this stage, because decisions are still being made, there is no official information regarding the meeting location, time, or whether either side will attend.A spokesperson for the European Commission stated that current data does not indicate that the EU is overly reliant on a single natural gas supplier.February 2nd - WHO Director-General Tedros Adhanom Ghebreyesus stated on Monday that the World Health Organization is being forced to significantly reduce its staff following announcements from the United States and Argentina that they would cease funding. Tedros described 2025 as "one of the most difficult years" for the organization. Last month, the United States formally completed its withdrawal process, costing the organization hundreds of millions of dollars annually. Simultaneously, Argentina announced its withdrawal from the WHO, expected to take effect in February 2026. Tedros warned that the sharp reduction in funding has already severely impacted countries reliant on WHO support. According to a recent WHO report, the organization will reduce its staff by approximately 25% by mid-2026. As of the end of 2024, the WHO had 9,457 staff members, the highest level in 15 years.Sources say SpaceX could announce its agreement with XAI as early as this week.Iranian Foreign Minister: Diplomacy and threats are incompatible.

EUR/USD falls toward 1.0500 as the US labor market tightens and investors investigate Eurozone inflation

Daniel Rogers

Jan 06, 2023 11:19

 EUR:USD.png

 

In the early Tokyo session, the EUR/USD pair is hanging at the critical support level of 1.0520. The major currency pair is projected to prolong its slide to around the psychological support of 1.0500, as the United States' tight job market has spurred the threat of the Federal Reserve (Fed) sustaining rising interest rates beyond CY2023.

 

Investors applied heavy selling pressure on risk-perceived assets such as the S&P 500 as the better-than-anticipated addition of new payrolls to the U.S. labor market for the month of December could accelerate wage inflation in the future. Risk aversion was encouraged by investors, resulting in a jump in the US Dollar Index (DXY). The USD Index jumped to roughly 105.00 due to a boost in safe-haven demand. A reduction in investors' risk appetite affected the demand for United States government bonds.

 

The Automatic Data Processing (ADP) agency of the United States declared a large increase in the number of employment additions for the month of December, from 150K to 235K, compared to the previous release of 127K. It is abundantly evident that increasing demands for skill will be satisfied by paying higher remuneration, therefore stimulating wage growth and leaving individuals with more spare cash. The declaration could bring about a price index recovery through a spike in retail demand.

 

In the future, the United States Nonfarm Payrolls (NFP) statistics release will give further information on the employment situation. The Unemployment Rate is anticipated to continue at 3.7%. In addition, the disclosure of the facts regarding the Average Hourly Wage will be of the utmost importance.

 

Investors will eagerly scrutinize the release of the Eurozone Harmonized Index of Consumer Prices (HICP) numbers on Friday. In view of the fall in energy prices and German inflation, it is quite possible that Eurozone inflationary pressures will follow a similar trend.

 

As reported by Reuters, European Central Bank (ECB) policymaker Francois Villeroy de Galhau noted in a New Year's address: "It would be desirable to achieve the appropriate 'terminal rate' by the summer of next year, but it is too early to say at what level."


Suggestion