Economic reports from the US were rather beneficial for the dollar today, but their influence was outweighed by the announcement of the quantitative easing by the Federal Reserve. EUR/USD surged and is likely to rise further. EUR/USD trades now at 1.4132.
ADP employment rate increased by 43k from September to October on a seasonally adjusted basis. Forex traders expected a smaller advance to 21k. The estimated change of employment from August to September was revised up from the previously reported decline of 39k to a smaller decline of 2k.
ISM services index rose from 53.2 to 54.3 in October, exceeding forecasts, which promised an increase to 53.5.
Factory orders increased by 2.1% in September. The revised August reading shows no change (0.0%). The forecast value for September was at 1.3%.
Crude oil inventories increased by 2.0 million barrels and total motor gasoline inventories decreased by 2.7 million barrels last week.
The much anticipated FOMC statement was released today. While the size of the
Currently, the unemployment rate is elevated, and measures of underlying inflation are somewhat low, relative to levels that the Committee judges to be consistent, over the longer run, with its dual mandate. Although the Committee anticipates a gradual return to higher levels of resource utilization in a context of price stability, progress toward its objectives has been disappointingly slow.
Interest rates remained at zero to 0.25%.
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