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EUR/USD Slumps as ECB Shocks Forex Market

November 7, 2013 by

EUR/USD slumped today as the European Central Bank shocked the Forex market, cutting interest rates. Before the announcement, it was widely believed that the central bank will not add monetary stimulus so soon. Surprisingly enough, the currency pair started to recover after positive reports from the United States were released.

US GDP expanded 2.8% in the third quarter of 2013, according to the first (advance) estimate, after growing 2.5% in the second quarter. (Event A on the chart.)

Initial jobless claims dropped from 345k (revised up from 340k) to 336k, matching forecasts exactly. (Event A on the chart.)

Consumer credit rose by $13.7 billion in September from August, a bit above the average forecast of $13.0 billion. The August increase was revised positively from $13.6 billion to $14.2 billion. (Event B on the chart.)

EUR/USD for 2013-11-07

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

One Response to “EUR/USD Slumps as ECB Shocks Forex Market”

  1. Molly

    OMG!
    well, we must wait for the NFP. I’m sure it’ll change the picture even more.

    Reply

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