EUR/USD Halts Rally Quickly

As was expected, the rally of EUR/USD has been short-lived as the currency pair dropped on Thursday. US economic data was mostly positive, especially the impressive growth of retail sales. Meanwhile, Greece remains a major negative factor for the euro, making the 19-nation currency soft compared to the US dollar.
Retail sales rose 1.2% in May, in line with expectation of a 1.1% increase. The previous month’s reading was revised from no change to 0.2% growth. (Event A on the chart.)
Initial jobless claims rose a little from 277k to 279k last week while analysts had expected the indicator to stay unchanged. (Event A on the chart.)
Import and export prices increased in May. Import prices rose 1.2%, exceeding the median forecast of 0.9%. It was the first increase after 10 months of a decline, including the drop by 0.2% in April. Export prices grew 0.6% last month following the drop by 0.7% in April. (Event A on the chart.)
Business inventories were up 0.4% in April. That is compared to the market expectations of 0.2% and the March’s small increase by 0.1%. (Event B on the chart.)


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