can someone please explain what happened to the eur/usd what caused such a massive price correction?
Basically, the ECB cracked. Part of what’s kept the EUR strong across the board has been the view that they were biased toward hiking rates while everyone else is lowering. Today they apparently decided this wasn’t necessarily the best course of action, so now traders are thinking there might be some rate cuts in the future.
The dollar rose against major currencies on Wednesday after a U.S. government reports showed strong job growth, more factory orders and productivity gains.
Companies added 189,000 jobs in November, triple economists’ expectations, according to the ADP employer services report. The report also revised upward October’s job additions by 13,000 to 119,000.
Meanwhile, factory orders rose unexpectedly, growing 0.5 percent in October, led by a 1.8 boost in petroleum, the Commerce Department said.
Worker productivity also grew faster than expected, posting an annual rate of 6.3 percent, its fastest growth since 2003. Sequentially the rate grew from 2.2 percent in the second quarter.
The dollar rose to $1.4601 per euro at 3:55 p.m. in New York, from $1.4758 yesterday. The dollar climbed to 110.91 yen from 109.87. The U.S. Dollar Index rose 0.7 percent to 76.241
Also found this, but has Monseuir Trichet been fibbing as well?
i see, makes sense, thanks guys