Forex Blog

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


EUR/USD Rallies on News About Coronavirus Vaccine Tests

July 15, 2020 by

EUR/USD rallied today amid risk appetite caused by the news about progress in producing a coronavirus vaccine. The news drove investors towards riskier assets, hurting safer ones at the same time. The currency pair has trimmed its gains by now but so far is hanging above the opening level. As for US macroeconomic data, all reports released today were good.

NY Empire State Index climbed to 17.2 in July from -0.2% in June, exceeding the average forecast of 10.0. It was the first positive reading since February. (Event A on the chart.)

Both import and export prices increased by 1.4% in June. In May, import prices rose by 0.8% and export prices increased by 0.4%. Analysts were expecting a smaller increase in import prices — 1.0%. (Event A on the chart.)

Industrial production climbed by 5.4% in June, beating the consensus forecast of a 4.5% increase, after increasing by 1.4%. Capacity utilization jumped from 65.1% to 68.6%, also exceeding the analysts’ forecast of 67.9%. (Event B on the chart.)

US crude oil inventories dropped by 7.5 million barrels last week but remained above the five-year average for this time of year. Analysts had predicted a much smaller drop of 1.3 million barrels. The stockpiles increased by 5.7 million barrels the week before. Total motor gasoline inventories fell by 3.1 million barrels but also remained above the five-year average. (Event C on the chart.)

Yesterday, a report on CPI was released, showing an increase of 0.6% in June on a seasonally adjusted basis, which exceeded the median forecast of a 0.5% increase slightly. The index fell by 0.1% in the previous month. (Not shown on the chart.)

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

Leave a Reply

required (will not be published)