US Dollar Trying to Recover After ADP Report Exceeded Forecast
The US dollar is trying to regain some ground after better than expected job data. The US private employers added 235.000 jobs in February, well above economists' expectations, the ADP report showed. Economists had expected the ADP nonfarm payrolls report showed a gain of 195.000 jobs. Private sector jobs increased by an upwardly revised 244.000 in January. Data from the US also showed, trade deficit widened to USD -56.6b in January. Nonfarm productivity was finalized at 0.0% in Q4, unit labor costs at 2.5%.
The Eurozone economy grew by 0.6% in the final quarter of last year. Eurostat said the Eurozone GDP grew by 0.6% month-on-month and by 2.7% year-on-year. That followed expansion of 0.7% and 2.7 percent respectively in the third quarter. Overall in 2017, Eurozone GDP rose 2.3 %, the fastest rate of growth since a 3.0% rise in 2007.
It’s reported that EU is considering a 25% tit-for-tat tariff on US goods that worth EU 2.8b, should US imposes the steel and aluminum tariffs. IMF Managing Director Christine Lagarde warned that in a so-called trade war, driven by reciprocal increases of import tariffs, nobody wins, and the macroeconomic impact could be very serious.
The European Union offered Britain a free trade agreement for their post-Brexit relationship, a draft text showed, outlining a much more limited cooperation than London had called for. The document also rules out UK Prime Minister Theresa May’s proposal of “mutual recognition” of standards.The financial services is not included in the trade agreement.