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EUR/USD Reverses Decline After US GDP Disappoints

January 28, 2021 by

EUR/USD was moving down today but has reversed its movement after US gross domestic product missed expectations. The rest of the US macro indicators released over the trading session were mixed, with some coming out above expectations, but that did not prevent the currency pair from rebounding to trade above the opening level.

US GDP rose by 4.0% in Q4 2020, slightly less than analysts predicted — 4.2%, according to the advance (first) estimate. The increase followed the 33.4% jump in the previous quarter. (Event A on the chart.)

Initial jobless claims were at 847k last week, seasonally adjusted, down from 914k the week before (revised up from 900k). Analysts had predicted a higher number of 880k. (Event A on the chart.)

Leading indicators rose by 0.3% in December, matching market expectations. The November increase got a positive revision from 0.6% to 0.7%. (Event B on the chart.)

New home sales were at a seasonally adjusted annual rate of 842k in December, trailing the analysts’ consensus estimate of 860k. The November figure got a negative revision from 841k to 829k. (Event B on the chart.)

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