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EUR/USD Jumps After EU Summit

July 21, 2011 by

EUR/USD jumped today after at the European Union summit a draft was devised, that should made a period of default in Greece as short as possible and would prevent the sovereign-debt crisis from spreading to other European nations. Today’s macroeconomic data showed that US manufacturing is regaining its footing, while unemployment claims increased above expectations. EUR/USD trades now at 1.4356.

Initial jobless claims rose to 418k, even though they were expected to be little changed at 409k from the previous reading of 408k. The state government shutdown in Minnesota resulted in 1,750 state employees to seek unemployment benefits. (Event A on the chart.)

Philadelphia Fed manufacturing index rose from -7.7 in June to 3.2 in July. The median forecast was 2.7. The reading was above zero, indicating growth, but the low value suggested that the US manufacturing is still weak. (Event B on the chart.)

Leading indicators rose 0.3% in June from May, compared to the expected value of 0.2% and the May growth of 0.8%. (Event B on the chart.)

EUR/USD for 2011-07-21

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