EUR/USD Sinks After US Retail Sales, Industrial Production

EUR/USD sank today even as US retail sales missed expectations. But the miss was small and the core components came out within expectations. Furthermore, both the headline and underline figures for the preceding month got a positive revision. And on top of that, industrial production beat forecasts. The positive data eased concerns that the US economy is experiencing slowdown.
Retail sales rose 0.5% in May from April. That was below analysts’ forecasts of a 0.7% increase. On the positive note, the April reading was revised from a drop by 0.2% to an increase by 0.3%. (Event A on the chart.)
Industrial production rose 0.4% in May after falling at the same rate in April (revised, the drop was by 0.5% before the revision). Analysts had predicted a more modest increase by 0.2%. Capacity utilization edged up a little from 77.9% to 78.1%, in line with expectations. (Event B on the chart.)
Michigan Sentiment Index fell to 97.9 in June from 100.0 in May. The actual figure was close to the consensus forecast. (Event C on the chart.)
Business inventories rose 0.5% in April. That is compared to the predicted increase by 0.4% and no change logged in March. (Event C on the chart.)

If you have any comments on the recent EUR/USD action, please reply using the form below.

Leave a Reply

Your email address will not be published. Required fields are marked *