Together, the USD (U.S Dollar), and the EUR (Euro) form the “most-traded) pairs of currency all over the world. Recently, data was released from Macroeconomic in the United States and it showed weak results, however, this didn’t hinder the Dollar from ranking as the highest against Euro since 1 February this year. A reason for this could be the unexpected collapse of the Euro due to inflation.
Even though economic data reports show worse results, EUR/USD climb high and they are two currencies that people rely on. Even though the pair moves higher, the Euro remains under constant pressure from different speculations that the Central European Bank will ease off its monetary policies soon.
The Chicago Purchasing Managers Index showed a drop from figures of 55.6-47.6 in the month of February. This was below the figures of forecast that read 52.1 in the charts, and pending home sales went down to 2.5% in the month of January. This was truly an unpleasant and big surprise to analysts in the market. Especially to those who anticipated 0.6% increase in the figures.
In the month of December, the charts got a noticeable gain and positive revision from as much as 0.1% all the way to 0.9%.
Last week, the initial jobless claims reached higher levels from 272k up to 278k, whereas specialists had predicted their stay to remain unchanged. A drop in Nonfarm productivity to 22.4% could also be a reason why US economic data doesn’t affect USD/EUR. Compared to previous charts, there was a predicted drop of over 3.2%, and a decline of over 3.0% in the previous periods of recording.
From 53.2 in the month of January, the final market services PMI observed a drop to 49.7 in the month of February. These readings were expected in the market expectations and they stayed in line in the same reading this month.
ISM Services PMI didn’t have any change on the values of 53.9% in the month of February and they were close to the forecasts. These were pointing at approximately 53.2%. In the month of February, Factory orders rose high to about 1.6% in the month of January, after experiencing a fall of 2.9% in the month of December. Market analysts initially had promised a noticeable increase of about 2.1% in the neighborhood.
ADP employment also rose high by about 214k in the month of February; this exceeded the forecast median of 185k. This followed by a negative revise that read 193k in the month of January. Inventories of crude oil also climbed high by over 10.4 million barrels in the last week, reaching a new record. This was compared to the increase forecast of about 2.5 million and prior weeks were expected to gain as much as 3.5 million.
The gasoline inventories for motors declined by over 1.5 million barrels in the last week, but this was still way above the upper limits of average ranges, as predicted. Even with so much difference in the economic data, there isn’t much difference on USD/EUR.