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EUR/USD Sinks Following Surge of US Retail Sales

June 16, 2020 by

EUR/USD was attempting to extend yesterday’s rally today but failed and turned lower, continuing to move down following the release of US retail sales data, which showed a huge surge of sales last month.

Retail sales jumped by 17.3% in May, far more than analysts had predicted — 7.9%. The April drop got a revision from 16.4% to 14.7%. (Event A on the chart.)

Both industrial production and capacity utilization increased in May less than analysts had predicted. Industrial production rose by 1.4% versus expectations of a 3.0% increase. Furthermore, the April drop got a negative revision from 11.2% to 12.5%. Capacity utilization rose from 64.0% to 64.8% but missed the consensus forecast of 66.8%. (Event B on the chart.)

Business inventories decreased by 1.3% in April versus the forecast drop of 0.8%. The March decrease got a small revision from 0.2% to 0.3%. (Event C on the chart.)

Yesterday, a couple of reports were released (not shown on the chart.):

NY Empire State Index surged from -48.5 in May to -0.2 in June, exceeding the average forecast of -30.0.

Net foreign purchases were at -$128.4 billion in April. That is compared with the median forecast of $86.7 billion and the previous month’s reading of -$111.6 billion.

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

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