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EUR/USD Sinks After German Economic Sentiment, US Retail Sales

July 16, 2019 by

EUR/USD sank today. The currency pair started the decline during the early European trading session and continued to fall after the release of the worsening German economic sentiment (event A on the chart) and better-than-expected US retail sales.

Retail sales, both headline and underline, rose 0.4% in June from the previous month, whereas analysts had expected an increase of 0.1%. Both received a negative revision to the increase in May from 0.5% to 0.4%. (Event B on the chart.)

Import and export prices declined in June. Import prices dropped 0.9% versus the market consensus of a 0.7% drop. The May reading got a positive revision from a 0.3% fall to no change. Export prices fell 0.7% in June following the 0.2% decline in May. (Event B on the chart.)

Industrial production was unchanged in June. That is compared with the forecast of a 0.1% increase and the 0.4% gain registered in May. Capacity utilization fell to 77.9% from 78.1%, whereas expert had expected the indicator to stay about unchanged. (Event C on the chart.)

Business inventories rose 0.3% in May. That was a slower rate of growth than 0.4% predicted by analysts and 0.5% logged in April. (Event D on the chart.)

Net foreign purchases were at the surprisingly low level of just $3.5 billion in May. That is compared with the forecast of $32.2 billion and $46.9 billion posted in April. (Event E on the chart.)

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

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