The US dollar was broadly weaker against other currencies, including the euro, today as Forex traders were cautious ahead of the Federal Reserve’s policy meeting that will start tomorrow. EUR/USD retreated from its daily highs, forming a
NY Empire State Index demonstrated a drop from 7.8 in February to 6.9 in March versus the predicted increase to 8.1. Still, the report said that “business activity continued to expand at a modest pace.” (Event A on the chart.)
Both industrial production and capacity utilization fell short of expectations in February. Industrial production was up just 0.1% compared to the median forecast of 0.3%. Capacity utilization was at 78.9%, below the predicted level of 79.5%. The January’s readings were revised negatively: from 0.2% to -0.3% for production and from 79.4% to 79.1% for utilization. (Event B on the chart.)
US net foreign purchases were at industrial production and capacity utilization while experts predicted the exactly same reading but in a positive territory. The previous month’s reading was revised from $35.4 billion up to $39.2 billion. (Event C on the chart.)
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