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EUR/USD Trades Lower After Explosions in Brussels

March 22, 2016 by

EUR/USD was trading below the opening level today, though the currency pair is attempting to rebound right now. There were several reasons for the dollar’s gains against the euro. Firstly, the news about explosions in Brussels resulted in the risk-averse sentiment on the Forex market. Secondly, a couple of regional Fed presidents spoke, suggesting that an April interest rate hike remains in the cards. Thirdly, the unexpected jump of the Richmond Fed manufacturing index was beneficial to the greenback.

Flash Markit manufacturing PMI was at 51.4 in March, almost unchanged from the February reading of 51.3. Analysts had predicted a bit higher reading of 51.6. (Event A on the chart.)

Richmond Fed manufacturing index surged from -4 to 22 in March, reaching the highest level since April 2010. Markets were completely unprepared to the surge as they were anticipating just a meager increase to -1. (Event B on the chart.)

EUR/USD as of 2016-03-22

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