EUR/USD extended yesterday’s drop for the second session today after a US employment report turned out to be far better than most optimistic expectations. Today’s data precedes tomorrow’s nonfarm payrolls, and it gave hope for traders (at least, to those who are bullish on the dollar) that the payrolls will be solid too.
ADP employment grew by 281k in June following the 179k growth in May. The actual value was substantially higher that the predicted figure of 207k. (Event A on the chart.)
Factory orders fell 0.5% in May, in line with expectations, after rising 0.8% in the previous month. (Event B on the chart.)
Crude oil inventories decreased by 3.2 million barrels last week but remained above the upper limit of the average range for this time of year. This is compared to the predicted drop of 2.2 million and the previous week’s increase of 1.7 million. Total motor gasoline inventories decreased by 1.2 million barrels, staying in the middle of the average range. (Event C on the chart.)
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