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EUR/USD Falls, Ignores Amazing US Employment

February 3, 2021 by

EUR/USD fell by 9:00 GMT today and has been trading sideways since then. The currency pair ignored the stellar US jobs report. The pair slipped following the better-than-expected services reports but the decline was not big enough to break from the range.

ADP employment climbed by 174k in January from December. That was a far bigger increase than 48k predicted by analysts. The December decrease got a revision from 123k to 78k. (Event A on the chart.)

Markit services PMI climbed to 58.3 in January from 54.8 in December according to the final estimate. Market participants were expecting the same 57.5 reading as in the preliminary report. (Event B on the chart.)

ISM services PMI climbed to 58.7% in January, seasonally adjusted, from 57.7% in December. That was a total surprise to experts who were expecting a drop to 56.7%. (Event C on the chart.)

US crude oil inventories shrank by 1.0 million barrels last week but remained about 4% above the five-year average for this time of year. Analysts had predicted a smaller decrease by 0.6 million barrels. The week before the stockpiles surprised the market by demonstrating a huge slump of 9.9 million barrels. Total motor gasoline inventories increased by 4.5 million barrels but were about 1% 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.

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