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EUR/USD Dips as US Retail Sales Rise Far Above Expectations

May 13, 2016 by

EUR/USD dived today after the release of US economic data. While not all the reports were good, those that were turned out to be much better than expectations. Most notably, retail sales showed the biggest growth in two years.

PPI rose 0.2% in April (seasonally adjusted) after falling 0.1% in March. The increase predicted by analysts was a bit bigger — 0.3%. (Event A on the chart.)

Retail sales adjusted for seasonal variations were up 1.3% in April. It was a total surprise to economists as they were counting on the same 0.3% drop as in March. (Event A on the chart.)

Michigan Sentiment Index (preliminary) climbed from 89.0 in April to 95.8 in May, far above the predicted level of 89.9. (Event B on the chart.)

Business inventories expanded 0.4% in March versus the forecast increase of 0.2% and the previous month’s drop by 0.1%. (Event B on the chart.)

EUR/USD as of 2016-05-13

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