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EUR/USD Jumps as Draghi Promises to Support Shared European Currency

July 26, 2012 by

EUR/USD climbed today, rising for the second day, after European Central Bank President Mario Draghi said that “the ECB is ready to do whatever it takes to preserve the euro”. Traders were happy to hear such reassurance and flocked to the shared 17-nation currency. The US data was mixed today. Most notably, unemployment claims fell much more than was hoped for.

Initial jobless claims was at the seasonally adjusted rate of 353k last week, falling from 388k a week before. The drop was much bigger than the anticipated change to 381k. (Event A on the chart.)

Durable goods orders grew 1.6% in June, the same rate of growth as the revised change in May. Traders thought that the increase would be just 0.4%. (Event A on the chart.)

Pending homes sales declined 1.4% in June from May, compare to the anticipated 0.6% growth. The May change was revised from 5.9% to 5.4%. (Event B on the chart.)

EUR/USD for 2012-07-26

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