Data from USA Makes EUR/USD Drop to New Low

EUR/USD sank to a new multi-year low today as economic data from the United States continued to show growth of the economy in contrast to indicators from Europe. While US employment growth was not as big as some market participants have hoped for, it was still robust and beneficial to dollar’s performance.
ADP employment growth was at 208k in November on a seasonally adjusted basis. While the actual value was not bad, staying above the 200k level, it was below the predicted figure of 223k and the previous month’s increase by 233k. (Event A on the chart.)
Nonfarm productivity increased at the 2.3% annual rate during Q3 2014, matching forecast exactly. Productivity rose 2.0% in the previous three months. (Event B on the chart.)
ISM services PMI stood at 59.3% in November, far above forecasts of 57.5% and the previous month’s figure of 57.1%. (Event C on the chart.)
Crude oil inventories decreased by 3.7 million barrels last week, following the increase by 1.9 million the week before, but remained in the upper half of the average range for this time of year. The drop was a total surprise to analysts who expected an increase by 1.1 million. Total motor gasoline inventories increased by 2.1 million barrels yet are well below the lower limit of the average range. (Event D on the chart.)


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