EUR/USD traded sideways following yesterday’s gains. It is a bit surprising that the currency pair did not continue to rally considering that economic news from the United States was not good while reports from the eurozone were mostly positive, especially the
US import and export prices dropped in January. Import prices were down as much as 2.8% (but still not as much as the forecast 3.1%) while export prices declined 2.0%. The December values got a revision: from -2.5% to -1.9% for imports and from -1.2% to -1.0% for exports. The report stated that the export price index “has not recorded a monthly advance since July.” (Event B on the chart.)
The preliminary Michigan Sentiment Index declined from 98.1 in January to 93.6 in February. Analysts expected the index to stay little changed. (Event C on the chart.)
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