EUR/USD was fluctuating at the beginning of the trading week, falling a little yesterday and rising a little today, as the Forex market still digests the last week’s abysmal US employment report. Dennis Lockhart, the President the Federal Reserve Bank of Atlanta, said yesterday that the poor data would not prevent the US central bank from reducing asset purchases. Such comments sent the currency pair down, but the impact was not very strong and EUR/USD was able to recover today.
Retails sales increased 0.2% in December, matching forecasts exactly, while the November’s change was revised from 0.7% down to 0.4%. (Event A on the chart.)
Import prices demonstrated no change in December after falling 0.9% in November (a downward revision from -0.6%). The median forecast promised 0.3% drop. Export prices increased 0.4% last month following the previous month’s increase of 0.1%. (Event A on the chart.)
Business inventories edged up 0.4% in November, in line with expectations, after expanding 0.8% in the month before. (Event B on the chart.)
Yesterday, a report on treasury budget was released, showing a surplus of $53.2 billion in December, which is a better reading than the predicted surplus $44.3 billion and the previous month’s deficit of $135.2 billion. (Not shown on the chart.)
If you have any comments on the recent EUR/USD action, please reply using the form below.
