Forex Blog

First-hand Forex trading experience and information about foreign exchange market that will be useful to traders

Archives

EUR/USD Rallies on German Business Sentiment

September 17, 2019 by

EUR/USD jumped today after the business sentiment for Germany as well as the whole eurozone showed a surprisingly sharp improvement this month. (Event A on the chart.) But market participants question the ability of the currency pair to maintain its upward momentum for long, especially if the Federal Reserve will disappoint markets with its monetary policy announcement tomorrow.

Both industrial production and capacity utilization increased in August. Industrial production rose by 0.6%, exceeding the average forecast of a 0.2% increase. The previous month’s drop got a positive revision from 0.2% to 0.1%. Capacity utilization rose from 77.5% to 77.9%, whereas analysts were expecting it to stay about unchanged. (Event B on the chart.)

Net foreign purchases were at $84.3 billion in July. The value was smaller than $99.1 billion logged in June but bigger than $81.3 billion predicted by analysts. (Event C on the chart.)

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

Leave a Reply

required
required (will not be published)
optional