EUR/USD Down After ECB Slashes Rate and Mixed Reports Come out in U.S.

Euro traded below its opening level against the U.S. dollar today as the fundamental reports in the United States were bad enough to raise the risk-aversion, but not bad enough to press on the greenback. In addition, the European Central Bank cut the interest rate from 2% to 1.5%, signaling that the further reductions are still possible. EUR/USD is now trading at 1.2536.
Nonfarm business productivity change for the fourth quarter of 2008 was revised from 3.2% to -0.4%; it was expected to be revised to 1.1%. The year-to-year change of 2.8% was left the same after revision.
Initial jobless claims were above 600k for the fifth week. Last week they were at 639k — that’s 31k less than 670k reported for the previous week and slightly better than the forecast of 650k.
Factory orders fell for the sixth month in a row in January — by 4.5% — worse than in December (3.9% decline) and worse than the analysts expected (3.5% decline).

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