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EUR/USD Drops After US Jobless Claims Fall Unexpectedly

February 4, 2021 (Last updated on February 5, 2021) by

EUR/USD was falling during Thursday’s trading session and extended its decline after US jobless claims demonstrated a surprise drop last week. Other US macroeconomic indicators released today also beat expectations. In the end, the currency pair dropped to the lowest level since January 12.

Initial jobless claims dropped to 779k last week, seasonally adjusted, from the previous week’s revised level of 812k (847k before the revision). That is instead of rising to 828k as analysts had predicted. (Event A on the chart.)

Nonfarm productivity decreased by 4.8% in Q4 2020, more than analysts had predicted — 2.9%. The previous quarter’s increase got a revision from 4.9% to 4.6%. (Event A on the chart.)

Factory orders rose by 1.1% in December, exceeding the median forecast of a 0.7% increase. The previous month’s gain got a positive revision from 1.0% to 1.3%. (Event B on the chart.)

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