EUR/USD Backs Off After Wednesday’s Rally

EUR/USD retreated following yesterday’s rally caused by comments of US President Donald Trump about dollar’s strength. Analysts said that markets overreacted as the comments did not contradict Trump’s previous stance, giving no really new information, and it is doubtful that the President has the power to influence the exchange rate. As for US economic data today, it was very mixed, with falling PPI, stable jobless claims, and improving consumer sentiment.
PPI dropped 0.1% in March while analysts did not predict any change. The index was up 0.3% in February. (Event A on the chart.)
Initial jobless claims were at the seasonally adjusted rate of 234k last week, little changed from the previous week’s revised level of 235k. The average forecast promised an increase to 242k. (Event A on the chart.)
Preliminary Michigan Sentiment Index demonstrated an increase from 96.9 in March to 98.0 in April. The actual value was above the figure predicted by experts — 97.1. (Event B on the chart.)

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