EUR/USD Opens Sharply Lower on Stimulus Talks

EUR/USD opened sharply lower today and was falling for the most part of the trading session as European policy makers signaled over the weekend that the strong euro warrants additional stimulus measures. European Central Bank President Mario Draghi explained that the exchange rate should not influence monetary policy directly but it may have an indirect impact as the currency’s strength affects inflation and economic growth.
Retail sales grew 1.1% in March, faster than was expected — 0.8%. The February increase was revised positively from 0.3% to 0.7%. (Event A on the chart.)
Business inventories expanded by 0.4% in February, at the same rate as in January and a bit slower than was forecast (0.5%). (Event B on the chart.)

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