EUR/USD is unchanged in Thursday trade. Currently, the pair is trading at 1.1231, down 0.02% on the day. On the release front, German factory orders plunged 4.2%, nowhere near the estimate of 0.3%. Later in the day, the ECB posts the minutes of its March meeting. In the U.S., today’s highlight is unemployment claims, which is expected to rise to 215 thousand. On Friday, the U.S. releases wage growth and nonfarm payrolls, so traders should be prepared for movement from the pair.
German manufacturing numbers continue to point downwards. Factory orders were dismal in February, declining for a fourth successive month. The eurozone’s largest economy has slowed down as a result of the global trade war, with exports and manufacturing particularly hard-hit. Soft global demand could continue, and the Economy Ministry summed up the bleak situation, saying that “manufacturing momentum will continue to be subdued in the coming months, particularly due to lacking external demand”.
After disappointing manufacturing PMIs in March, there was better news from services PMI reports. German and eurozone indicators came in at 55.4, and 53.3, respectively. The PMIs point to continuing growth in the services sector, indicative of steady domestic demand. The same cannot be said about German manufacturing, with manufacturing PMIs losing ground for eight straight releases.
It’s been a disappointing week for U.S. numbers, and the trend continued on Wednesday. ADP nonfarm payrolls plunged to 129 thousand, down from 183 thousand in the previous release. Is this a precursor of what to expect on Friday? Nonfarm payrolls are projected at 175 thousand, a soft number in comparison to recent releases. ISM Non-Manufacturing PMI also stumbled on Wednesday, falling from 59.7 to 56.1 points.
