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EUR/USD Jumps with Anticipation of ECB Meeting

December 1, 2010 (Last updated on December 2, 2010) by

EUR/USD jumped today on hopes that tomorrow’s meeting of the European Central Bank’s Governing Council will help to find solution to European debt crisis. Most analysts, though, aren’t convinced that any significant change of the situation will follow the meeting and think that the rally is short-lived. US economic reports were generally close to forecast values, though employment and construction spending reports showed significantly better figure than was expected. EUR/USD trades currently at 1.3126.

ADP employment rate showed an increase by 93k from October to November, while analysts promised an increase by 70k. From September to October an increase was by 82k, revised from 43k.

US nonfarm productivity increased at a 2.3% annual rate during the third quarter of 2010, revised from a previous reading of 1.9%. Forecasts was near the actual figure, promising a 2.4% growth.

ISM PMI index posted a small drop to 56.6 in November from 56.9 in October. The actual value was near the median forecast of 56.4.

Total construction spending grew by 0.7% in October, the same rate of growth as in September (which was revised from 0.5%). The reading frustrated analysts who expected a decline by 0.3%.

Crude oil inventories increased by 1.1 million barrels and total motor gasoline inventories increased by 0.6 million barrels last week.

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