EUR/USD Erases Gains After ECB Meeting

EUR/USD had started a strong rally after 9:00 GMT but has lost it after the monetary policy meeting of the European Central Bank. (Event A on the chart.) Now, market participants focus on the next week’s meeting of the Federal Reserve, and some of analysts say that the Fed may be more bullish than traders are anticipating. US data was not that great today (with the exception of jobless claims), but it did not prevent the dollar from staging a bounce against the euro.
Philadelphia Fed manufacturing index decreased from 12.4 in March to -1.6 in April. Forecasters had predicted a much smaller drop to 8.1. (Event A on the chart.)
Initial jobless claims fell from 253k to 247k last week while analysts had forecast an increase to 265k. (Event A on the chart.)
Leading index rose 0.2% in March, less than experts had promised (0.4%). The February reading was revised from 0.1% down to -0.1%. (Event B on the chart.)


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