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EUR/USD Falls as Risk Aversion Grips Market

October 15, 2020 by

EUR/USD fell today. Market analysts explained the drop by risk aversion caused by waning hopes that US politicians will be able to agree on a relief package before the presidential election. The threat of the second wave of the COVID-19 pandemic was also bothering market participants.

Philadelphia Fed manufacturing index climbed from 15.0 to 32.2 in October instead of edging down to 14.4 as analysts had predicted. It is the highest level since February. (Event A on the chart.)

Initial jobless claims rose to a seasonally adjusted level of 898k last week from the previous week’s revised level of 845k (840k before the revision). That was an unpleasant surprise to economists who were expecting a decrease to 810k. (Event A on the chart.)

NY Empire State Index fell to 10.5 in October from 17.0 in September, below the consensus forecast of 13.9. (Event A on the chart.)

Import and export prices rose in September. Import prices rose by 0.3%, matching forecasts exactly, after increasing by 0.9% in August. Export prices increased by 0.6% after advancing by 0.5% in the previous month. (Event A on the chart.)

US crude oil inventories dropped by 3.8 million barrels, more than analysts were expecting — 2.1 million. Despite the drop, the stockpiles were far above the five-year average for this time of year. The reserves edged down by 0.5 million barrels the week before. Total motor gasoline inventories decreased by 1.6 million barrels and were below the five-year average. (Event B on the chart.)

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