EUR/USD Drops, Trims Decline on Disappointing US Retail Sales

EUR/USD was heading lower today, but bounced after US retail sales disappointed traders, showing growth that was smaller than expected. The rally was short-lived and the euro may yet retreat to the session’s lows.
Retail sales increased 0.4% in June, missing the predicted 0.7%. The May’s change was revised from 0.6% to 0.5%. (Event A on the chart.)
NY Empire State Index rose from 7.8 in June to 9.5 in July. The reading was definitely better than the pessimistic forecast that promised a decrease to 5.2. (Event A on the chart.)
Business inventories expanded 0.1% in May. Market analysts expected that the stockpiles will grow at the same rate as in April — 0.2% (revised from 0.3%). (Event B on the chart.)


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