Forex Blog

EUR/USD continued to fall today after a very sharp decline yesterday. Many traders got surprised by the ADP employment report, which helped to strengthen the dollar, but the greenback gained even before the report release. This is the second day this week when EUR/USD falls. Monday gave some uprise to this currency pair, but it’s nothing compared to the current decline. EUR/USD is currently trading near 1.5542 level.

ADP employment report showed that the nonfarm private employment increased by 9,000 from June to July after having decreased by 79,000 a month ago. The median forecast for the change in June was -60,000 — so, that’s quite a nice surprise for every dollar bull-trader.

Crude oil invetories dropped 0.1 million barrels last week and are in the lower half of the average range for this time of year. Last week they lost almost 1.6 million barrels.

EUR/USD grew today to its monthly maximum and remained well above the yesterday’s close level after the bad data on employment was released in U.S. today. Other economic releases failed to support the dollar today.

ADP employment report surprised markets with 79k drop in jobs in June, whereas the forecast was a 40k decline. This was the first drop in employment since February according to ADP.

Factory orders rose in May by 0.6%, better than the 0.5% growth in the consensus forecast, but below the April’s 1.3% growth (revised up from 1.1%). Manufacturing remains the only sector of the economy unaffected by the ongoing crisis.

Crude oil inventories decreased by 2 million barrels last week and they are still near the lower boundary of the average range for this time of year.