EUR/USD Resumes Slide as Moody’s Downgrades European Countries

EUR/USD was falling today after Moody’s Investor Service reduced credit ratings of several European countries yesterday. The currency pair advanced briefly after Italy and Spain successfully performed bond auctions, but quickly resumed its decline. US data was rather neutral today, but still indicated that the US economy is recovering.
US retail sales rose 0.4% in January. That’s two times below the forecast value of 0.8%, but much better than the December reading that was revised from 0.1% to 0.0%. (Event A on the chart.)
Import and export prices increased in January. Import prices grew 0.3%, matching forecasts, following the drop by 0.1% in December. Export prices advanced 0.2% last month after declining 0.5% in December. (Event A on the chart.)
Business inventories grew 0.4% in December, exactly as forecasters predicted, following the November increase by 0.3%. (Event B on the chart.)


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