EUR/USD Drops as Inflation Slows

EUR/USD resumed its decline today as the eurozone Consumer Price Index fell from 2.2% in December to 2.0% in January on an annual basis. (Event A on the chart.) On month-over-month basis, the CPI declined 0.1%. It looked like fears about Europe came out from the market, but now are returning. The news from the United States was quite good, even considering that the US economy showed almost no growth.
US GDP rose 0.1% in the fourth quarter of 2012, according to the preliminary estimate. The value was lower than analysts have predicted (0.5%), but higher than in the advance estimate (-0.1%). (Event B on the chart.)
Initial jobless claims dropped from 366k to 344k last week. Specialists have expected unemployment claims to little changed at 361k. (Event B on the chart.)
Chicago PMI advanced from 55.6 in January to seasonally adjusted 56.8 in February. Forecasters have promised a decrease to 54.6. (Event C on the chart.)


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