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EUR/USD Flat as Markets Wait for Election Results

November 4, 2020 by

Today, EUR/USD was moving back and forth but is now trading flat. Trading was choppy as markets were waiting for the outcome of the US presidential election. As of the time of writing, there was no clear victor, though Democratic candidate Joe Biden seems to be gaining the lead.

ADP employment rose by 365k in October from September on a seasonally adjusted basis. That was a much smaller increase than 753k registered in the previous month and 650k predicted by analysts. (Event A on the chart.)

Trade balance deficit was at $63.9 billion in September, down from $67.0 billion in August, in line with the average forecast of $64.2 billion. (Event B on the chart.)

Markit services PMI climbed to 56.9 in October from 54.6 in September according to the revised estimate. Market participants were expecting the same 56.0 reading as in the preliminary estimate. (Event C on the chart.)

ISM services PMI slipped to 56.6% in October from 57.8% in September. Analysts were expecting just a small decrease to 57.4%. (Event D on the chart.)

US crude oil inventories dropped by 8.0 million barrels last week, though remained above the five-year average for this time of year. That is instead of rising by 0.3 million as experts had predicted. The stockpiles rose by 4.3 million the week before. Total motor gasoline inventories increased by 1.5 million barrels and were also above the five-year average. (Event E on the chart.)

Yesterday, a report on factory orders was released, showing an increase of 1.1% in September, in line with market expectations, which followed a 0.6% gain logged in the preceding month. (Not shown on the chart.)

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

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