This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.
EUR/USD is trading at $1.3271, up 0.1% on the day, following news that the number of people unemployed in the eurozone dropped by 24,000. This is the first decline in two years. The drop in the jobless rate wasn’t large enough to change the official rate from 12.1%, but it is progress none the less. Traders bought the euro on the back of this, as they felt the eurozone could be at a turning point.
Later today, the US will release the latest ADP employment change report, and economists are expecting 179,000 private sector jobs to be created. This could also give us an indication of what is in store for the non-farm payrolls on Friday.
The Federal Reserve will make an announcement at 7pm, and this will be the most important economic event of the day. The Federal Reserve has made it very clear that its stimulus package will be tapered when the economy improves. Traders will therefore be listening out for hints as to when the quantitative easing programme will be trimmed. If it is in the near future, we could see a drop in the euro.