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EUR/USD Rises After ECB Expands Stimulus Within Expectations

December 10, 2020 by

The European Central Bank expanded its stimulus in line with market expectations today. (Event A on the chart.) As was expected by many market analysts, EUR/USD rallied after the event as a dovish announcement had been priced in already. As for US macroeconomic data, it was mixed, though macro reports had a limited impact on markets as the policy decision took the spotlight.

US CPI rose by 0.2% in November, exceeding the average forecast of a 0.1% increase. The index demonstrated no change in October. (Event B on the chart.)

Initial jobless claims were at 853k last week, seasonally adjusted, up from the previous week’s revised level of 716k. The actual value was far above the forecast figure of 723k. (Event B on the chart.)

Treasury budget deficit shrank from $284.1 billion in October to $145.3 billion in November, below the forecast level of $200.0 billion. (Event C on the chart.)

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

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