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EUR/USD Declines After Positive Revision of US GDP

November 27, 2019 (Last updated on November 28, 2019) by

EUR/USD was falling today and accelerated its decline after US gross domestic product got an unexpected positive revision in the second estimate. Other reports released at the same time (13:30 GMT) also beat expectations. But while releases that followed afterward were all disappointing, that did not prevent further decline of the currency pair.

Durable goods orders rose 0.6% in October instead of falling 0.5% as analysts had predicted. The indicator dropped 1.2% in September. (Event A on the chart.)

US GDP rose 2.1% in Q3 2019 according to the preliminary (second) estimate. Market participants were expecting the same 1.9% increase as was shown in the advance (first) estimate. The economy expanded by 2.0% in Q2. (Event A on the chart.)

Seasonally adjusted initial jobless claims dropped to 213k last week from the previous week’s revised level of 228k, below the forecast level of 223k. (Event A on the chart.)

Chicago PMI climbed to 46.3 in November from 43.2 in October but failed to meet the consensus forecast of 47.2. (Event B on the chart.)

Personal income showed no change in October, while traders were expecting the same 0.3% increase as in September. Personal spending increased 0.3%, matching forecasts exactly, after rising 0.2% in the preceding month. Core PCE inflation was at 0.1%, up from 0.0% in September but missing the median forecast of 0.2%. (Event C on the chart.)

Pending home sales dropped by 1.7% in October, while analysts had predicted an increase of 0.2%. The sales rose 1.4% in September. (Event C on the chart.)

Crude oil inventories increased by 1.6 million barrels last week instead of falling by 0.5% million barrels as experts had predicted. The stockpiles rose by 1.4 million barrels the week before. Total motor gasoline inventories swelled by 5.1 million barrels. (Event D on the chart.)

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