Forex Blog

The euro was trading without persistent direction against the US dollar today until the poor macroeconomic report from the USA led to a strong upward wave, which turned out to be short-lived. The currency pair then declined significantly, proceeding to form a deeply bearish daily candlestick.

S&P/Case-Shiller home price index increased by 5.0% in October compared to the previous year. It was expected to fall to 4.8% this time. The September growth has been revised from 5.1% to 5.2%. (Event A on the chart.)

Richmond Fed manufacturing index surprised market participants with a rather deep plunge, going down from 14 to -8 in December — its worst reading since April 2009. Analysts had forecast a modest increase to 16. The negative index suggests deteriorating conditions in US manufacturing activity. (Event B on the chart.)

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