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EUR/USD Crashes as German Economy Slows, Brexit Vote Starts

January 15, 2019 by

EUR/USD crashed today. There were a couple of likely causes of the crash: slowing growth of the German economy and the Brexit vote in the British parliament. The currency pair tumbled even as US macroeconomic data was disappointing. Talking about US data, there will be fewer releases than usual in the near future due to the US government shutdown. For example, the retail sales report that should have been released tomorrow will not come out.

US PPI fell 0.2% in December, seasonally adjusted. The decline exceeded the drop of 0.1% predicted by the consensus forecast. The index increased 0.1% in November. (Event A on the chart.)

NY Empire State Index dropped from 10.9 to 3.9 in January, reaching the lowest level in more than a year. That is instead of rising to 11.6 as analysts had predicted. (Event A on the chart.)

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

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