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EUR/USD Backs Off After Strong Move Up

January 18, 2017 by

EUR/USD went down today after yesterday’s move up. The currency pair rushed especially fast to the downside after Janet Yellen, Federal Reserve Chair, said during today’s speech that policy makers should not wait too long before raising interest rates further. (Event C on the chart.) Positive macroeconomic data released from the United States also put pressure on the currency pair.

CPI rose 0.3% in December, matching forecasts, after increasing 0.2% in November. (Event A on the chart.)

Industrial production rose 0.8% in December after falling 0.7% in November. Capacity utilization was at 75.5% in December, up from 74.9% in November. Both indicators were in line with market expectations. (Event B on the chart.)

Net foreign purchases were at $30.8 billion in November. That was significantly above the forecast value of $21.3 billion and the October’s $9.3 billion. (Event D on the chart.)

Yesterday, a report on NY Empire State Index was released, showing a drop from 9.0 to 6.5 in January, below the figure of 8.1 predicted by analysts. (Not shown on the chart.)

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

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