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EUR/USD Drops on Data & Portugal, Erases Losses

July 3, 2013 by

EUR/USD dropped today on weak economic data from Europe and political turmoil in Portugal. Yet the currency pair rebounded later even as reports from the United States were good. Today’s employment report was better than expected, giving hope that Friday’s nonfarm payrolls will be positive too.

ADP employment came out at 188k in June, better than the expected 161k and above the previous reading of 134k. (Event A on the chart.)

Trade balance deficit increased to $45.0 billion in May from $40.1 billion in April, while it was expected to be little changed. (Event B on the chart.)

Initial jobless claims fell a little from 348k to 343k, matching forecasts. (Event B on the chart.)

ISM services PMI slipped from 53.7 in May to 52.2 in June instead of rising to 54.3 as was predicted by analysts. (Event C on the chart.)

US crude oil inventories decreased by 10.3 million barrels last week, much more than experts have predicted (2.6 million). The stockpiles showed no change in the week before. Total motor gasoline inventories decreased by 1.7 million barrels. (Event D on the chart.)

Yesterday, a report on factory orders was released, showing an increase by 2.1% in May, in line with forecasts. The April’s rise was revised positively from 1.0% to 1.3%. (Not shown on the chart.)

EUR/USD for 2013-07-03

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