04.07.201908:13 Forex Analysis & Reviews: Review of EUR / USD and GBP / USD pairs on 07/04/2019: US Independence Day

Yesterday's macroeconomic data turned out to be a little different from what was expected and as a result, this led to another trampling on the spot. Thus, the final data on the index of business activity in the services sector in Europe showed an increase from 52.9 to 53.6, and not to 53.4. The situation is similar in the composite index of business activity, which increased from 51.8 not to 52.1 but to 52.2. But in the UK, the index of business activity in the services sector fell from 51.0 to 50.2. However, due to the fact that the data in Europe came out slightly better than forecast, this allowed the single European currency to strengthen its position before the publication of American data. The pound was also able to hold on to their positions but the forecasts for American statistics foreshadowed a clear strengthening of the dollar. Although it turned out to be quite good, it still raises a number of concerns. Hence, ADP data showed an increase in employment by 102 thousand, not by 140 thousand. Nevertheless, this is still an increase as employment increased by 41 thousand in the previous month. The total number of applications for unemployment benefits decreased by only 16 thousand, which was expected to be reduced by 25 thousand. At the same time, the number of initial claims for unemployment benefits did not decrease by 6 thousand but by 8 thousand but for repeated applications, the number of which decreased by 8 thousand instead of 19 thousand are much more important.

All data on the labor market on the eve of tomorrow's publication of the report of the Ministry of the United States raises suspicions that the contents of the report will be somewhat not as much as expected. After all, forecasts for yesterday's data unambiguously foreshadowed the growth of the dollar but the actual data does cause some questions, which led to the fading of quotations in place. However, in Europe, the final data on business activity indices turned out to be better than forecasts and preliminary estimates. The business activity index in the service sector rose from 50.9 to 51.5, which allowed the composite index to grow from 50.9 to 51.5. However, this did not allow the dollar to perk up since this good news was leveled by a decline in Production orders by 0.7%. In general, all American statistics caused mixed feelings and with these confusing thoughts about the upcoming report of the United States Department of Labor, American traders went to celebrate Independence Day.

Well, once it is a day off in the United States today, it will be boring and lonely without American traders on the market even the data on retail sales in Europe. The growth rate of which can accelerate from 1.5% to 1.6% will be ignored. At best, they will be remembered tomorrow and even then, it is not a fact since everyone will look forward to the publication of the report of the United States Department of Labor. Hence, the market today will stand still.