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EUR/USD Declines amid Speculations About US Tariffs Rollback

January 18, 2019 by

EUR/USD declined today even as the US consumer sentiment worsened significantly this month. Yet the improving industrial production helped the dollar to gain on the euro. Another reason for the dollar’s strength was the rumor that the United States are considering lifting tariffs on Chinese imports.

Industrial production rose 0.3% in December after increasing 0.4% in November (revised, 0.6% before the revision). Analysts had expected a bit smaller increase by 0.2%. Capacity utilization edged up a little from 78.6% to 78.7%, in line with expectations. (Event A on the chart.)

Michigan Sentiment Index dropped to 90.7 in January from 98.3 in December according to the preliminary report. Economists had anticipated a much higher reading of 97.0. The report said that it was the “lowest level since Trump was elected.” (Event B on the chart.)

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

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