EUR/USD Falls as ECB Refrains from Cutting Rates

EUR/USD extended its fall today after the European Central Bank maintained its interest rates. (Event A on the chart.) Traders have hoped that the central bank will ease its monetary policy and were not particularly pleased with the decision, spoiling their mood that was already sour after the US election. Even better-than-expected economic reports from the United States did not help the market sentiment.
US trade balance deficit shrank to $41.5 billion in September down from $43.8 billion in August. A pleasant surprise for traders, who expected an increase to $44.9 billion. (Event B on the chart.)
Initial jobless claims fell from 363k to 355k last week, instead of rising to 367k as was predicted by analysts. (Event B on the chart.)


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