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ADP Employment Disappoints, EUR/USD Doesn’t Halt Decline

September 2, 2020 by

EUR/USD was falling today and extended its decline after the employment report from Automatic Data Processing missed market expectations by a wide margin.

ADP employment rose by 428k in August. While a significant improvement compared to the July increase of 212k (which itself was positively revised from 167k), the actual value was still a huge miss compared with the median forecast of 1,250k. (Event A on the chart.)

Factory orders climbed by 6.4% in July, the same as in June (revised up from 6.2%). Analysts had predicted a more modest increase of 6.0%. (Event B on the chart.)

US crude oil inventories dropped by 9.4 million barrels last week, though remained above the five-year average for this time of year. The actual drop was far bigger than 2.0 million predicted by experts and 4.7 million registered in the previous week. Total motor gasoline inventories decreased by 4.3 million barrels but also stayed above the five-year average. (Event C on the chart.)

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