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EUR/USD Drops Even as US Services Sector Fails to Meet Expectations

June 5, 2017 by

EUR/USD dropped today even as growth of the US services sector slowed, and other economic indicators were also unimpressive. Traders focus on the policy decision of the European Central Bank scheduled for June 8. No changes to the existing policy are expected, but market participants count on a more hawkish statement from the ECB.

Nonfarm productivity showed no change in the first quarter of 2017 while experts had predicted the same 0.6% drop as in the previous three months. (Event A on the chart.)

Seasonally adjusted Markit services PMI rose from 53.1 in April to 53.6 in May according to the revised estimate. Markets were counting on about the same value as the preliminary reading of 54.0. (Event B on the chart.)

ISM services PMI fell from 57.5% in April to 56.9% in May. That is compared to the forecast value of 57.1%. (Event C on the chart.)

Factory orders fell 0.2% in April, exactly as forecasters predicted. The March reading got a big positive revision from a 0.2% increase to 1.0%. (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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