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EUR/USD Rallies, Ignoring US Data

December 3, 2020 (Last updated on January 7, 2021) by

EUR/USD rallied today, ignoring better-than-expected macroeconomic reports released in the United States over Thursday’s trading session. Market analysts explained the rally by the hopes that US Congress will approve a coronavirus relief bill. Now, traders wait for tomorrow’s nonfarm payrolls, which are going to be arguably the most important macro release this week.

Initial jobless claims fell to 712k last week, seasonally adjusted, down from the previous week’s revised level of 787k (778k before the revision). The actual figure was below the median forecast of 775k. (Event A on the chart.)

Markit services PMI climbed to 58.4 in November from 56.9 in October according to the final estimate, reaching the highest level since March 2015. Market participants were expecting the same figure of 57.5 as in the preliminary report. (Event B on the chart.)

ISM services PMI, on the other hand, fell to 55.9 in November from 56.6 in October, reaching the lowest level in six months. The reading was in line with market expectations. (Event C on the chart.)

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