EUR/USD is showing little movement in the Thursday session. Currently, the pair is trading at 1.1206, up 0.10% on the day. On the release front, it’s a busy day on both sides of the pond. German and eurozone manufacturing PMIs were within expectations, with readings of 44.4 and 47.9, respectively. German retail sales declined by 0.2%, better than the estimate of -0.5%. In the U.S., unemployment claims is expected to drop to 220 thousand. On Friday, the U.S. releases nonfarm payrolls and wage growth.
Eurozone manufacturing remains soft, and there were no surprises from German and eurozone manufacturing PMIs for April, which remain mired in negative territory. Still, the readings were higher than those for March. Weaker global demand and taken a heavy toll on exports from Germany and the eurozone, which has damaged the manufacturing sectors. German retail sales declined in March, as nervous consumers held tight to their purse strings.
The Federal Reserve maintained the benchmark rate, as expected. The rate statement noted that inflation pressures are muted and that the FOMC would remain patient regarding future rate movements. Jerome Powell reinforced this stance at a follow-up press conference, saying “we don’t see a strong case for moving in either direction”. The Fed is already on record as saying it does not expect to raise rates before 2020, and with inflation levels persistently below the Fed’s target of 2.0%, the Fed can afford to continue its wait-and-see stance.
