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EUR/USD Declines After Eurozone Data, Retains Losses After Huge US Employment Drop

May 6, 2020 by

EUR/USD dropped today following the release of a string of very poor services PMIs for the eurozone. While the currency pair attempted to bounce after a US employment report that showed a huge drop, the rally was small and short-lived, not surprising considering that even the very bad employment data was better than market expectations.

ADP employment dropped by 20,236k in April from March on a seasonally adjusted basis, though it was still better than the analysts’ consensus forecast of a 20,500k decline. The March fall got a big revision from 27k to 149k. (Event A on the chart.)

US crude oil inventories grew by 4.6 million barrels last week. The increase was smaller than 8.5 million predicted by experts and 9.0 million registered in the previous week. Total motor gasoline inventories decreased by 3.2 million barrels. Both indicators were above the five-year average for this time of year. (Event B on the chart.)

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