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EUR/USD Surges on Terrible US Nonfarm Payrolls

June 3, 2011 by

EUR/USD soared today as Greece will receive new bailout and the US economy provided another evidence of its weakness. The report about service industries was good, but impact of the disastrous nonfarm payrolls can easily overshadow any good signs from the US. EUR/USD trades now at about 1.4632.

Nonfarm payrolls changed very little by 54k in May. The reading was nowhere near the predicted 161k and was definitely below the April change of 232k. Unemployment rate rose to 9.1%, while it was expected to stay at the previous level of 9.0%. (Event A on the chart.)

ISM services index increased to 54.6% in May from 52.8% in April. The index went higher then anticipated by market participants, who were expecting a reading of 53.8%. (Event B on the chart.)

EURUSD for 2011-06-03

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