EUR/USD Finds Respite After Poor US Data

EUR/USD recovered today following its earlier drop to a new multi-year low. One of the reasons for the bounce is today’s US macroeconomic data that was not good at all. Still, the majority of market analysts are very bearish on the euro, thinking that the current rally is just a short-term bounce in the bear market.
Seasonally adjusted retail sales declined 0.6% in February instead of rising 0.3% as was predicted by analysts. The indicator was down 0.8% in January. (Event A on the chart.)
Initial jobless claims slid to 289k last week from the previous week’s revised level of 325k. The median forecast was pointing at a 306k figure. (Event A on the chart.)
Import prices rose 0.4% in February, two times the forecast rate of 0.2%. The previous month’s change was revised negatively from -2.8% to -3.1%. Meanwhile, export prices ticked down 0.1% following the 1.9% drop in January. (Event A on the chart.)
Business inventories were unchanged in January, the same as in December, while experts predicted a 0.2% increase. (Event B on the chart.)
Treasury budget deficit swelled from $17.5 billion in January to $192.3 billion in February, exceeding the median forecast of $188.9 billion a bit. (Event C on the chart.)


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