EUR/USD has posted losses in the Tuesday session. Currently, the pair is trading at 1.1719, down 0.28% on the day. On the release front, German ZEW Economic Sentiment dropped to -24.7, a sharper drop than expected. The forecast stood at -17.9 points. Eurozone ZEW Economic Sentiment followed a similar trend, dropping to -18.7 points. This reading was weaker than the estimate of -13.2 points. The U.S releases JOLTS Jobs Openings, which is expected to improve to 6.88 million. On Tuesday, U.S Core CPI and CPI and both expected to drop 0.2%.
The economic outlook for the eurozone appears cloudy, according to the latest ZEW Economic Sentiment indicators. The German and eurozone releases both dropped to their lowest levels since August 2012. The surveys indicate the views of financial experts, who are clearly concerned about economic sentiment. Internal divisions over migration and fears over a full-blown global trade war have investors worried that the eurozone could be heading into significant headwinds, which could send the euro downwards.
U.S employment data was a mix on Friday, as job growth remained above the 200-thousand level, but wage growth faltered. Nonfarm payrolls dropped to 213 thousand, but this beat the estimate of 195 thousand. Average Hourly Earnings edged lower to 0.2%, shy of the estimate of 0.3%. There was a surprise as the unemployment rate climbed to 4.0%, above the forecast of 3.8%. The data demonstrates that the U.S labor market remains strong, and the economy continues to perform well. The markets remain bullish on U.S growth, despite uncertainty in Europe and elsewhere, as well as the growing threat of an all-out trade war between the U.S and China.
