© Dukascopy Bank SA
In course of the previous trading week ended November 6, the pair showed unexpected and harsh decline. By beginning the week on Monday, the Euro remained moderately higher against the Dollar, holding just above a week's maximum after data showing the US manufacturing sector expanded at the slowest rate in two years in October. According to the Institute for Supply Management's non-manufacturing index rose to 59.1 in October from 56.9 in September. New orders and employment sub-indices also advanced. Moreover, the US service sector has expanded for 69 straight months. However, in a week's period gains were replaced by constant decline. On Tuesday, the Dollar gained ground against the other major currencies, due to the downbeat US data weighed on expectations for a US rate hike in December. Furthermore, by the end of the week, the Greenback, rallied to seven-month highs against the other major currencies after a far stronger than expected US jobs report reinforced expectations for a rate hike by the Federal Reserve next month. The US nonfarm payrolls grew by 271,000 in October, easily exceeding the median estimate of 180,000. The unemployment rate fell to 5%, the lowest since April 2008. It was the highest year-over-year wage increase since 2008. This week, Dukascopy traders became totally bearish on the European currency's perspectives, as only 12.5% of all votes are set to go long on the EUR/USD currency pair at the moment. Despite that, the market is waiting for preliminary data on Eurozone's third quarter economic growth on Friday. Meanwhile, from the American side, traders could pay attention to the data on initial jobless claims on Thursday as well as Friday's data on retail sales, producer prices, and a preliminary report on consumer sentiment the.
© Dukascopy Bank SA