The US reported a mixed bag of economic data today. The ADP jobs numbers were slightly worse-than-expected, disappointing dollar bulls. However the ISM Non-Manufacturing PMI Index came in higher-than expected. Economists were expecting a score of 51 for February, an increase from January's score of 50.5. The actual February score was reported at 53. This is a positive leading economic indicator for the US services sector, comprising the largest part of the economy.
However, the Eurodollar shot through its upper bollinger band today, reaching as high as $1.3735 (the highest since Feb. 17) from the day's low of $1.3590. The pair had been stuck in a flat range-bound pattern from early morning, but began its liftoff at around 15:30 GMT. The explanation given by traders was more Euro than Dollar-related. Some said that the move was related to speculative last minute buying towards the end of the European session. But most agreed that the move was primarily related to Greece's $6.5 billion pledge in pay cuts and tax increases to reduce its deficit, easing worries about the country's debt crisis.
In Separate news, US weekly crude oil inventories were reported 4 times higher than expected, at 4.1B barrels. This was followed by tremendous volatility in crude prices, first tanking over $1.00 per barrel and then immediately shooting up almost $2.00 to $81.20. The commodity is currently trading at around $80.69 per barrel. The usual suspects are speculation and market manipulation.