EUR/USD Falls Despite Rally Attempt on Poor US Fundamentals

The euro was trading without persistent direction against the US dollar today until the poor macroeconomic report from the USA led to a strong upward wave, which turned out to be short-lived. The currency pair then declined significantly, proceeding to form a deeply bearish daily candlestick.
S&P/Case-Shiller home price index increased by 5.0% in October compared to the previous year. It was expected to fall to 4.8% this time. The September growth has been revised from 5.1% to 5.2%.
Richmond Fed manufacturing index surprised market participants with a rather deep plunge, going down from 14 to -8 in December — its worst reading since April 2009. Analysts had forecast a modest increase to 16. The negative index suggests deteriorating conditions in US manufacturing activity.

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