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EUR/USD Drops on European PMI, US Releases

March 21, 2013 by

The US dollar strengthened against the single European currency following some bad PMI reports from the eurozone at the opening of today’s session. (Event A on the chart.) EUR/USD recovered some of the losses during later trading but continued its way down following US economic releases.

Initial jobless claims rose from 334k to 336k last week. Although it was better than forecast (340k), there was a minor negative surprise in revision of the previous weekly value from 332k to 334k. (Event B on the chart.)

Existing home sales at their seasonally adjusted annual rate increased from 4.94 million to 4.98 million units in February. The growth was short of the expected rate of 5 million units. At the same time, last month’s value has been revised from 4.92 million.(Event C on the chart.)

Philadelphia Fed manufacturing index rose from -12.5 to 2.0 this month. A much moderate growth (to -3.0) was expected by the market participants. (Event C on the chart.)

Leading indicators remained unchanged at 0.5% in February from the month before (revised up from 0.2%). The median forecast for this report was at 0.4%. (Event C on the chart.)

EUR/USD as of 2013-03-21

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