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EUR/USD Declines After Encouraging US Data

February 12, 2016 by

EUR/USD dropped today as most of US economic indicators were good while economic data from the eurozone was somewhat weak. Not every US indicator was good, though, as the consumer sentiment index dropped unexpectedly. Nevertheless, the reports reinvigorated speculations about potential interest rate hikes from the Federal Reserve this year.

Retail sales rose 0.2% in January, at the same pace as in December. Analysts had predicted a bit slower growth by 0.1%. (Event A on the chart.)

Import prices were down 1.1% in January, and again the January’s reading was the same as the December’s. Experts had predicted a bigger drop by 1.4%. Export prices fell 0.8% following the 1.1% drop in December. (Event A on the chart.)

Preliminary Michigan Sentiment Index fell from 92.0 to 90.7 instead of rising to 92.6 as was predicted by forecasters. (Event B on the chart.)

Business inventories increased by 0.1% in December from November, matching forecasts exactly. The indicator fell at the same rate in the previous reporting period. (Event B on the chart.)

EUR/USD as of 2016-02-12

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