EUR/USD Trades with High Volatility after ECB Rate Cut and U.S. Employment Report

EUR/USD rose immediately after ECB announced a rate cut today but then began to fall sharply before the reports on the U.S. employment sector were released. Now it’s trading near 1.3360 — above its daily open level at 1.3312.

ECB decided to cut the interest rate by 0.25% today and now the Eurozone’s benchmark rate is at 1%.

Initial jobless claims were at 601k last week — down from 635k reported a week before. They were expected to remain at 635k level.

Nonfarm business productivity growth was reported at 0.8% for the first quarter of 2009 after posting 0.6% change in the fourth quarter of 2008 (revised down from -0.4%). This indicator was expected to come out near 0.6% today.