Europe’s Economy Performs Worse than US — EUR/USD Drops

EUR/USD dropped today, erasing yesterday’s gains, as reports from the US were better than expected, while European economic data caused concerns. That reminded us that, while the US economy and the dollar still remain weak, Europe hasn’t resolved its problems and the euro may experience sharp corrections. EUR/USD currently trades near 1.4034.
Nonfarm payrolls increased by 151k in October and the unemployment rate was unchanged at 9.6 percent. Forecasts promised an increase by 63k for payrolls and were right expecting no change in unemployment rate. Nonfarm payrolls declined 41k in September.
Pending home sales slipped 1.8% to 80.9 in September from an upwardly revised 82.4 in August. Traders expected growth by 3.2%.
Total consumer credit in the US increased by $2.1 billion in September. This was unexpected considering it has declined by $4.9 billion in August and median forecast promised a further drop by $3.1 billion.

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