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EUR/USD Soars on Poor Employment Expectations

May 6, 2015 by

The currency pair was rising steadily before the opening of the European trading session today. The rally did not last long following the not-so-good Markit PMI and retail sales reports from the eurozone (events A and B on the chart). The correction ended when the US employment data from ADP had been released.

ADP employment added 169k jobs in April after 175k growth in March (revised down from 189k). It also fell short of the median forecast of 200k. (Event C on the chart.)

Nonfarm productivity fell by 1.9% in the first quarter of 2015. It decreased by 2.1% in Q4 of 2014 (revised from 2.2% decline). The productivity declined according to forecasts. (Event D on the chart.)

US crude oil inventories fell by 3.9 million barrels during the week that ended on May 1. It was the first weekly drop since January. The oil reserves are at the highest level for this time of the year for at least the last 80 years. The previous week demonstrated an increase of 1.9 million barrels. A growth of 1.5 million barrels was expected this time. Total motor gasoline inventories increased by 0.4 million barrels. (Event E on the chart.)

EUR/USD as of 2015-05-06

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