Following some large waves of early trading session volatility, the EUR/USD Forex pair fell as some positive macro reports came out of the United States today. Traders sold euro versus USD on high PPI and good industrial production expansion. The consumer sentiment report, which came as the latest US fundamental indicator for the week, ruined the fun for the dollar bulls and pushed EUR/USD to recovery.
Producer Price Index increased by 0.2% in July following 0.4% growth in June. The value was just a notch above the forecast growth of 0.1%. (Event A on the chart.)
Industrial production and capacity utilization were a mixed bag. On the one hand, the growth of the production in July by 0.6% was much better than the median forecast of 0.3%. On the other hand, June’s increase was revised down from 0.3% to 0.1%. At the same time, the capacity utilization was at 78.0% in July, while June’s value was revised down significantly — from 78.4% to 77.7%. (Event B on the chart.)
Michigan Sentiment Index in its preliminary report for August showed a value of 92.9 — down from 93.1 of June and below the average expectation of 93.6. (Event C on the chart.)
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