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EUR/USD Continues Move Down as Traders Wait for Tax Overhaul

December 6, 2017 (Last updated on December 7, 2017) by

EUR/USD continued its move down today as traders were waiting for US politicians to proceed with the tax reform. Analysts also said that the rally was a result of US companies wanting to repatriate cash parked overseas before the year-end. As for US economic data, the ADP employment report came within expectations, and traders wait for Friday’s nonfarm payrolls.

ADP employment rose by 190k in November, in line with market expectations. The indicator was up by 235k in October. (Event A on the chart.)

Nonfarm productivity rose by 3.0% in Q3 2017, the same as in the previous quarter and less than analysts had predicted — 3.3%. (Event B on the chart.)

Crude oil inventories shrank by 5.6 million barrels last week, much more than analysts had predicted (3.2 million) and compared to the previous week’s decline by 3.4 million. Still, the reserves remained in the upper half of the average range for this time of year. At the same time, total motor gasoline inventories climbed by 6.8 million barrels and were in the middle of the average range. (Event C on the chart.)

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