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EUR/USD Snaps 2 Days of Growth as U.S. Fundamentals Disappointed

June 3, 2009 by

EUR/USD fell by the largest extent since April 27 today as the U.S. macroeconomic indicators failed to maintain the bullish interest in the high-yielding currencies. The oil inventories rose also pressing on the oil prices and thus on the commodity currencies. EUR/USD is now trading near 1.4122.

ADP employment report showed a decline by 532k jobs in May, following a decrease by 545k in April (revised down from 491k drop). Estimates by the analysts were near -525k.

Factory orders increased by 0.7% in April after falling by 1.9% in March (revised down from 0.9% drop). Average forecast was at 0.9% gain.

ISM services index rose from 43.7% to 44% in May — this value disappointed the market participants as they expected a growth to 45%.

Crude oil inventories increased by 2.9 million barrels last week in U.S. They are above the upper limit of the average range for this time of year.

Yesterday, the U.S. pending home sales report has showed a third month of gain as they added 6.7% in April compared to the previous month. This followed 3.2% growth in March and was above the 0.5% gain value of the forecast.

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