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EUR/USD Jumps on Bond-Swap Agreement

March 7, 2012 by

EUR/USD started today’s trading session flat, later it began to decline, but then sharply rose and is keeping the gains so far. The euro advanced as 58% of bondholders agreed to participate in the swap of the Greek debt. The US macroeconomic data was positive today and analysts predict that most of other report this week should also be good.

ADP employment showed an increase by 216k jobs in February. (Event A on the chart.)

Nonfarm productivity rose at the annual rate of 0.9% in the fourth quarter, compared to the 0.7% growth in the previous quarter. The actual reading was in line with forecast 0.8%. (Event B on the chart.)

Crude oil inventories increased by 0.8 million barrels, while total motor gasoline inventories decreased by 0.4 million barrels last week. (Event C on the chart.)

Consumer credit rose by $17.8 billion in January from December, compared to the December change by $16.3 billion (revised from $19.3 billion). That’s a pleasant surprise to market participants who expected a lower increase by $10.0 billion. (Event D on the chart.)

EUR/USD for 2012-03-07

If you have any comments on the recent EUR/USD action, please reply using the form below.

One Response to “EUR/USD Jumps on Bond-Swap Agreement”

  1. Ken

    There is more optimisim in the market based on the potential Greek PSI bond swap being successful. Trade in the direction of the overall trend due to the strong fundamental news.


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