EUR/USD has edged lower in the Monday session. Currently, the pair is trading at 1.1338, down 0.24% on the day. There are no major events out of the eurozone or the U.S., so traders can expect limited movement from the pair on Monday. On Tuesday, Germany and the eurozone will publish services PMIs, and the U.S. releases ISM Non-Manufacturing PMI.
Germany is a bellwether for the rest of the eurozone, and Friday’s data pointed to a strong labor market but trouble in the manufacturing sector. On the employment front, German unemployment rolls fell by 21 thousand, crushing the estimate of -5 thousand. The eurozone unemployment rate dropped to 7.8% in January, down from 7.9% a month earlier. The manufacturing industry continues to struggle, as the global trade war has reduced the demand for European exports. German and eurozone manufacturing PMIs in February came in below the 50-mark, which separates contraction from expansion. German consumers opened up the purse strings in January , as retail sales bounced back with a 3.3% gain, after a 4.3% decline in December.
In the U.S., Friday’s numbers were a disappointment, but the dollar still held its own. Personal Spending declined 0.5%, its first decline in almost three years. The ISM Manufacturing PMI fell to 54.2, short of the estimate of 55.6 points. As well, UoM consumer sentiment improved to 93.8, but still missed the forecast of 95.8 points. The focus will be on employment numbers this week, starting with ADP nonfarm payrolls on Wednesday.
