Forex Blog

First-hand Forex trading experience and information about foreign exchange market that will be useful to traders


EUR/USD Sinks as Yellen Talks About December Hike

November 5, 2015 by

EUR/USD tumbled on Wednesday as Fed Chairperson Janet Yellen said than an interest rate hike in December is “a live possibility.” (Event D on the chart.) US economic data released over the trading session supported the case for monetary tightening, being rather good.

ADP employment grew by 182k in October, in line with expectations. The September’s increase was revised slightly from 200k to 190k. (Event A on the chart.)

US trade balance deficit shrank to $40.8 billion in September from $48.0 billion in August. The median forecast pointed at $42.7 billion as a possible figure. (Event B on the chart.)

Final Markit services PMI was at 54.8 in October. It was below the September’s level of 55.1 but above the forecast value of 54.6 and the preliminary reading of 54.4. (Event C on the chart.)

ISM manufacturing PMI, on the other hand, climbed from 56.9 in September to 59.1 in October, frustrating analysts who had predicted a small drop to 56.6. (Event D on the chart.)

Crude oil inventories rose by 2.8 million barrels last week, less than in the week before (3.4 million) but more than the market had anticipated (2.5 million). Total motor gasoline inventories dropped by 3.3 million barrels but remained above the upper limit of the average range. (Event E on the chart.)

Yesterday, a report on factory orders was released, showing a drop by 1.0% in September. This is compared to the analysts’ predictions of 0.8% and the Augusts’ slump by 2.1%. (Not shown on the chart.)

EUR/USD for 2015-11-04

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

Leave a Reply

required (will not be published)