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EUR/USD Sinks, Extends Decline After Positive US Data

February 5, 2020 by

EUR/USD fell today and extended its decline after US employment data provided a big positive surprise.

ADP employment rose by 291k in January, far above the forecast reading of 157k and exceeding the previous month’s gain of 199k. (Event A on the chart.)

US trade balance deficit was at $48.9 billion in December, up from $43.7 billion in the previous month and close to expectations of $48.2 billion. (Event B on the chart.)

Markit services PMI was at the seasonally adjusted level of 53.4 in January up from 52.8 in December, near the preliminary reading and the consensus forecast of 53.2. (Event C on the chart.)

ISM services PMI rose to 55.5% in January up from 54.9% in December, exceeding the median forecast of 55.1%. (Event D on the chart.)

Crude oil increased by 3.4 million barrels in the previous week but remained below the five-year average for this time of year. That is compared with 2.9 million barrels predicted by analysts and 3.5 million barrels registered in the week before. Total motor gasoline inventories decreased by 0.1 million barrels but remained above the five-year average. (Event E on the chart.)

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

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