Forex Blog

First-hand Forex trading experience and information about foreign exchange market that will be useful to traders

Archives

EUR/USD Falls Despite Worse-than-Expected US Employment, Trims Losses After Mixed Services Data

March 3, 2021 by

EUR/USD attempted to rally intraday but failed and fell below the opening level. The currency pair was trading sideways after data showed that last month’s growth of US employment was just half of what was expected. The pair bounced a little after the release of contradicting reports on the US services sector.

ADP employment rose by just 117k in February. That was almost half the forecast figure of 203k. On a more positive note, the previous month’s increase got a revision from 174k to 195k. (Event A on the chart.)

Markit services PMI climbed to 59.8 in February from 58.3 in January according to the final estimate. Market participants were expecting the same 58.9 figure as in the preliminary report. (Event B on the chart.)

ISM services PMI, on the other hand, dropped to 55.3% in February from 58.7% in January, whereas experts had predicted it to stay unchanged. (Event C on the chart.)

US crude oil inventories soared by 21.6 million barrels last week instead of falling by 1.3 million barrels as analysts had predicted. The stockpiles were about 3% above the five-year average for this time of year. The week before, the reserves increased by 1.3 million barrels. Total motor gasoline inventories dropped by 13.6 million barrels and were about 3% below the five-year average. (Event D on the chart.)

If you have any comments on the recent EUR/USD action, please reply using the form below.

Leave a Reply

required
required (will not be published)