EUR/USD was falling today, threatening to log yet another session of losses. But the currency pair has erased its losses, at least for now, after a string of poor economic reports came out from the United States.
Seasonally adjusted flash Markit services PMI dropped sharply from 53.2 in January to 49.8 in February even though forecasters had promised a small increase. The move below the neutral 50.0 level indicates and end to the 27-month period of sustained growth of the sector. (Event A on the chart.)
New home sales were at the seasonally adjusted annual rate of 494k in January, far below the forecast level of 522k and the December’s rate of 544k. (Event B on the chart.)
US crude oil inventories grew by 3.5 million barrels to yet another record high last week. Experts had predicted basically the same 2.1 million rate of growth as in the preceding week. Total motor gasoline inventories fell by 2.2 million barrels but were well above the upper limit of the average range. (Event C on the chart.)
If you have any comments on the recent EUR/USD action, please reply using the form below.
