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EUR/USD Falls on Payrolls, Recovers on Construction Spending

April 1, 2011 by Vladimir Vyun

The very good US nonfarm payrolls pushed EUR/USD down today. Yet currently the currency pair attempts to rebound after the construction spending report provided the reading that was much worse than predicted. EUR/USD trades now at 1.4093 after it dropped earlier to 1.4064.

US nonfarm payrolls grew by 216k in March. That’s even more than the big growth by 194k in February and the optimistic forecast of 191k. Unemployment rate decreased slightly to 8.8%, while it was expected to stay unchanged at 8.9%. (Event A on the chart.)

ISM PMI was at 61.2% in March, in line with forecasts that promised 61.1%. That’s not very big change from 61.4% in February. The manufacturing grew for 20 consecutive months so far. (Event B on the chart.)

Construction spending contracted by 1.4% in January, a very big decline compared to the predicted decrease by only 0.1%. The drop was 1.8% in December. (Event B on the chart.)

EURUSD for 2011-04-01

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