Dollar Slightly Down But Spike Hints Bearish Sentiment

The U.S. dollar dropped against the euro today after some rather good fundamental reports on employment and total economic output. But the upward spike on the EUR/USD chart, which is significantly higher than the daily gain hints that the bearish sentiment among the traders is still quite strong near 1.4670 level. Currently, EUR/USD is trading near 1.4517.
ADP employment change report for September 2009 showed a decline by 254k jobs — that’s better than August’s 298k drop, but is worse than only 200k drop forecasted by the analysts.
U.S. GDP change for the 2nd quarter of 2009 received it final revision report today, which showed a decrease by only 0.7%, compared to 1% drop in the previous report and 1.2% decline forecast.
Chicago PMI fell from 50.0 to 46.1 in September, reflecting the pessimistic expectations of the manufacturing industry managers in the region. The index was expected to rise to 52.0.
U.S. crude oil inventories increased by 2.8 million barrels last week, while the total motor gasoline inventories decreased by 1.6 million barrels during the same period of time.

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