EUR/USD Goes Up with German Business Confidence

EUR/USD rose today, reaching the highest level since December 12, as German business confidence improved (event A on the chart), easing fears of economic recession in the eurozone. US data was neutral as unemployment claims remained unchanged, while existing home sales grew, but slower than was anticipated. The currency pair retreated from its daily high as traders remained concerned about the future of Europe.
Seasonally adjusted initial jobless claims was at 351k in the week ending February 18, unchanged from the previous week’s revised figure and in line with forecast of 352k. (Event B on the chart.)
US crude oil inventories increased by 1.6 million barrels and total motor gasoline inventories decreased by 0.6 million barrels last week. (Event C on the chart.)
Yesterday, a report on existing home sales was released, showing an increase to 4.57 million in January at a seasonally adjusted rate. (Not shown on the chart.) That’s compared to the average estimate of 4.66 million and the December reading of 4.38 million (revised down from 4.61 million).

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