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EUR/USD Rallies on ECB Meeting Account and Poor US Data

January 11, 2018 by

The euro rallied versus the US dollar immediately after the December ECB meeting accounts have been made public (event A on the chart). The account turned out to be more hawkish compared to what the market participants had expected. The currency pair then continued to grow following the poor macroeconomic data from the USA.

Producer price index (PPI) fell by 0.1% in December instead of rising by 0.2% in accordance with the median forecast. November PPI was at 0.4%. (Event B on the chart.)

Initial jobless claims were at 260k last week — up from 250k reported a week earlier. The expectation was for the number to decline to 245k. (Event B on the chart.)

Treasury budget deficit fell from $138.5 billion to $23.2 billion in December. Traders had expected it to decrease to $34.5 billion. (Event C on the chart.)

EUR/USD as of 2018-01-11

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