EUR/USD Edges Lower as Markets Eye Trump Press Conference
EUR/USD has edged lower in the Wednesday session, as the pair trades at 1.0520 in North American trade. It's a very quiet day on the economic front, with no major indicators in Europe or the US. On Thursday, investors will be keeping a close eye on two key events. The ECB will publish the minutes of its December policy meeting, while the US releases unemployment claims, with the indicator expected to rise to 266 thousand.
With little happening on the fundamentals front on Wednesday, the markets will be focusing on Donald Trump's press conference. Trump hasn't spoken formally with the press in six months, choosing instead to send pithy comments on his Twitter account. Trump had plenty to say about the ills of the US economy on the campaign trail, but was short on solutions. He has gone on record promising tax cuts and significant fiscal spending to repair the country's infrastructure. Trump has said he will implement protectionist policies, which has lessened investors' appetite for risk. The markets will be hoping for more specifics about economic policy, with just over a week until Inauguration Day. The US dollar has climbed sharply since mid-November, as the US economy sails full steam ahead in 2017.
The US released key employment numbers on Friday and the markets responded with a thumbs-up, boosting EUR/USD. Wages rebounded in December, as Average Hourly Earnings climbed 0.4%, edging above the estimate of 0.3%. This marked a strong turnaround after the November reading of -0.1%. The news was not as bright from Nonfarm Payrolls, which dropped to 156 thousand, well off the estimate of 175 thousand. This marked a 3-month low, but the dollar still posted gains. The unemployment rate edged up to 4.7%, matching the forecast.