EUR/USD dropped today, ending its sideways movement, as traders focused their attention on the positive report about US durable goods orders. This allowed the dollar to gain on the euro even though other indicators were not that good. The currency pair was trading in a range for the most part of the month, but it looks like a downside breakout has occurred.
CPI declined 0.7% in January on a seasonally adjusted basis. The drop exceeded the expected decline by 0.6% and the previous month’s 0.4%. (Event A on the chart.)
Initial jobless claims climbed to 313k last week (seasonally adjusted) from the previous week’s revised level of 282k, exceeding the median forecast of 288k. (Event A on the chart.)
Durable goods orders rose 2.8% in January, beating market expectations of 1.7%. The indicator fell 3.7% in December. (Event A on the chart.)
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