Yesterday, the traders ignored not only the data on inflation in the euro area, which emerged in the morning, but also a number of fundamental statistics for the US, which was quite diverse.
According to the report, the US trade deficit in March of this year fell sharply. This happened because of higher exports over imports. According to the report of the US Department of Commerce, the foreign trade deficit in March fell by 15.2% compared to the previous month and amounted to $ 48.96 billion. Economists had expected a deficit of $ 49.6 billion.
Export grew by 2.0% compared to the previous month due to the growth in shipments of aircraft and oil. Imports decreased by 1.8%.
The US Labor Department yesterday published a report according to which the productivity of labor outside agriculture in the first quarter of this year increased by 0.7% compared with the previous quarter. Labor costs increased by 2.7% compared to the previous quarter. Economists expected that productivity will grow by 1.0%, and labor costs will increase by 3%.
A slight slowdown in economic activity in the non-manufacturing sphere of the United States was also ignored by traders.
According to the Institute of Supply Management, the index of supply managers PMI for the non-manufacturing sector of the US in April this year fell to 56.8 points against 58.8 points in March. Economists had expected the index to be 58.2 in April. Let me remind you that the index values above 50 indicate an increase in activity.
Data on the labor market disappointed investors a little. Although the report is only week-long. According to the US Department of Labor, the number of initial applications for unemployment benefits for the week from 22 to 28 April increased by 2000 and amounted to 211,000. Economists had expected the number of applications to be 225,000.
Today, all the attention of traders will be tied to the report of the US Department of Labor on employment. It is expected that the unemployment rate will drop to 4.0% from 4.1%, and the number of people employed in the non-agricultural sector of the US in April will grow by 190,000, after rising by 103,000 in March this year.
As for the technical picture, a lot will depend on the support range of 1.1940-1.1950 today. If sellers manage to break it, a new downward trend will be formed, which will lead to new monthly minimums of 1.1870 and 1.1830. If buyers of risky assets manage to catch hold of the resistance level of 1.2000, an upward correction can lead to a trading instrument in the range of 1.2060 and 1.2100.