EUR/USD Flat After US Data

EUR/USD was rising initially today, spiking after the worse-than-expected retail sales report from the United States. Yet the currency pair retreated afterwards even though the rest of today’s economic data from the USA was not particularly supportive for the dollar either. EUR/USD dropped yesterday even though Greece reached an accord with its eurozone creditors.
Retail sales fell 0.3% in June, proving wrong analysts who had predicted an increase by 0.2%. The previous month’s change was revised from +1.2% down to +1.0%. (Event A on the chart.)
Both import and export prices fell in June. Import prices were down 0.1% while economists predicted an increase at the same rate. The drop followed the big gain by 1.2% in May. Export prices declined 0.2% after rising 0.6% in the preceding month. (Event A on the chart.)
Business inventories grew by 0.3% in May, exactly as was expected by most market participants, after rising 0.4% in April. (Event B on the chart.)
Yesterday, a report on treasury budget was released, showing a surplus of $51.8 billion in June, compared to the predicted $41.2 billion. The budged showed a deficit of $82.4 billion the month before. (Not shown on the chart.)


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