The USD rose significantly. Overview for 05.03.2021

The major currency pair remains weak on Friday after Jerome Powell’s comments. 

EURUSD remains under pressure at the end of the first week of March. The current quote for the instrument is 1.1926.

Yesterday, investors focused their attention on the speech to be delivered by the US Federal Reserve Chairman Jerome Powell. And it turned out it wasn’t in vain.

Powell said that the American labor market would have to go a long way to recovery but it should start improving yet today. The regulator is planning to actively study the sector health but even after unemployment reaches 4% it will be too early to say that the target is reached. Powell believes that the labor market is very unlikely to reach its balance this year.

According to Powell, before the pandemic, the American economy was much closer to the regulator’s inflation target. When the economy revives and opens its borders, inflation in the country will boost but it’s too early to make any inflation forecasts. 

Powell ended his detailed and insightful speech in a positive way by saying that the US economy had excellent grounds for a better tomorrow.

The statistics published yesterday showed that the Unemployment Claims was 745K this week after being 736K the week before and against the expected reading of 758K. 

Today is an important day when it comes to the numbers from the USA. Later in the evening, the country will continue reporting on its labor market, but the numbers are not expected to be too strong. However, any readings better than expected will be positive for the USD.

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Source: RoboForex


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