Forex Blog

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

Archives

EUR/USD Reverses Rally After US CPI Beats Expectations

March 11, 2020 by

EUR/USD attempted to rally today but failed, retreating after the US Consumer Price Index exceeded analysts’ forecasts. Persisting fears of the spreading coronavirus disease also weighed on the currency pair.

CPI rose by 0.1% in February on a seasonally adjusted basis, the same as in January. Market participants were expecting no change. (Event A on the chart.)

US crude oil inventories rose by 7.7 million barrels versus expectations of a 2.0 million barrel increase. Nevertheless, the stockpiles remained below the five-year average for this time of year. The reserves increased by just 0.8 million barrels the week before. Total motor gasoline inventories decreased by 5.0 million barrels but stayed above the five-year average. (Event B on the chart.)

US treasury budget deficit widened from $32.6 billion in January to $235.3 billion in February. The actual value was close to analysts’ forecasts of $238.1 billion. (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required (will not be published)