EUR/USD Jumps on Bond-Swap Agreement

EUR/USD started today’s trading session flat, later it began to decline, but then sharply rose and is keeping the gains so far. The euro advanced as 58% of bondholders agreed to participate in the swap of the Greek debt. The US macroeconomic data was positive today and analysts predict that most of other report this week should also be good.
ADP employment showed an increase by 216k jobs in February. (Event A on the chart.)
Nonfarm productivity rose at the annual rate of 0.9% in the fourth quarter, compared to the 0.7% growth in the previous quarter. The actual reading was in line with forecast 0.8%. (Event B on the chart.)
Crude oil inventories increased by 0.8 million barrels, while total motor gasoline inventories decreased by 0.4 million barrels last week. (Event C on the chart.)
Consumer credit rose by $17.8 billion in January from December, compared to the December change by $16.3 billion (revised from $19.3 billion). That’s a pleasant surprise to market participants who expected a lower increase by $10.0 billion. (Event D on the chart.)

If you have any comments on the recent EUR/USD action, please reply using the form below.

Leave a Reply

Your email address will not be published. Required fields are marked *

+ 68 = seventy seven