EUR/USD Slides After Eurozone Industrial Production Contracts

EUR/USD fell today, reversing yesterday’s gains. Market analysts argued that the possible reason for the decline was the bigger-than-expectedcontraction of eurozone industrial production. (Event A on the chart.) Macroeconomic data in the United States was not good as well, but that did not prevent the dollar from rising against the euro.
US CPI was flat in January on a seasonally adjusted basis, whereas analysts had expected an increase by 0.1%. The index declined 0.1% in the prior month. (Event B on the chart.)
Crude oil inventories increased by 3.6 million barrels last week, exceeding the analysts’ average forecast of a 2.1 million increase. The stockpiles rose by 1.3 million barrels the week before. Total motor gasoline inventories edged up by 0.4 million barrels. (Event C on the chart.)
Treasury budget deficit shrank to $13.5 in December from $204.9 in November. Economists had expected a big smaller deficit of $10.5 billion. (Event D on the chart.)

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