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EUR/USD Fails to Keep Upward Momentum

November 17, 2020 by

EUR/USD was rising on Tuesday, extending Monday’s rally caused by the news about another coronavirus vaccine being close to completion. But the currency pair was unable to sustain its bullish momentum and settled almost at the opening level. Tuesday was rich in terms of macroeconomic reports in the United States.

Retail sales rose by 0.3% in October, missing the average forecast of a 0.5% increase. The previous month’s gain got a negative revision from 1.9% to 1.7%. (Event A on the chart.)

Import prices fell by 0.1% in October, whereas economists were expecting the same 0.2% rate of increase as in September. Meanwhile, export prices rose by 0.2% after increasing by 0.6% in September. (Event A on the chart.)

Both industrial production and capacity utilization increased in October. Industrial production rose by 1.1%, matching forecasts exactly, after falling by 0.4% in September (revised from a 0.6% drop). Capacity utilization increased from 72.0% to 72.8%, exceeding the median forecast of 72.3%. (Event B on the chart.)

Business inventories grew by 0.7% in September, exceeding the analysts’ projections of a 0.5% gain and the previous month’s increase of 0.3%. (Event C on the chart.)

Net foreign purchases were at $108.9 billion in September. That is compared with the median forecast of $41.5 billion and the previous month’s value of $27.8 billion. (Event D on the chart.)

Yesterday, a report on NY Empire State Index was released, showing a drop from 10.5 in October to 6.3 in November instead of an increase to 13.8 predicted by analysts. (Not shown on the chart.)

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

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