EUR/USD Corrects After Two-Day Gain

EUR/USD corrected today, falling after the previous rally. Market participants continue to speculate about the possibility of an interest rate hike from the Federal Reserve next week, but there is a concern that the lift-off is already priced in and will not have a big impact on the dollar. The Thursday’s data from the United States was mildly positive, giving traders no reason to doubt that the Fed would refuse to act.
Initial jobless claims increased from 269k to 282k last week. It was a nasty surprise to those market analysts who had promised a small drop to 266k. (Event A on the chart.)
Both import and export prices fell in November. Prices for imports dropped 0.4% after falling 0.3% in October (revised positively from the 0.5% drop). That is compared to the predicted 0.8% decrease. Prices for exports slid 0.6% last month following the 0.2% drop in the prior month. (Event A on the chart.)
Treasury budget shrank from $136.5 billion in October to $64.6 billion in November. The median analysts’ forecast was at $68.2 billion. (Event B on the chart.)


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