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EUR/USD Drops After Release of Solid US Economic Reports

December 14, 2017 by

EUR/USD dropped today as almost all reports released in the United States over the trading session were good. The signs that the voting for the final version of the US tax reform bill may happen as soon as the next week also drove the currency pair down.

Retail sales rose 0.8% in November, exceeding the median forecast of 0.3%. The previous month’s increase was revised from 0.2% to 0.5%. (Event A on the chart.)

Import and export prices increased in November. Import prices rose 0.7%, matching forecasts exactly. Export prices edged up 0.5%. Both indicators were up 0.1% in October. (Event A on the chart.)

Seasonally adjusted initial jobless claims slid from 236k to 225k last week. Analysts had expected the claims to stay almost unchanged. (Event A on the chart.)

Flash Markit manufacturing PMI climbed from 53.9 in November to 55.0 in December, above the analysts’ average estimate of 54.0. At the same time, flash Markit services PMI slipped from 54.5 to 52.4 instead of rising to 54.8 as was predicted by forecasters. (Event B on the chart.)

Business inventories fell by 0.1% in October, exactly as experts had predicted. The inventories were unchanged in September. (Event C on the chart.)

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

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