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EUR/USD Down Despite Disappointing U.S. Data

November 17, 2009 by

The EUR/USD currency pair fell significantly today on international economic events even if the U.S. economic data released frustrated most of forecasts, indicating a less optimistic, but still positive performance for industrial production and producer price index. Risk appetite was down favoring the dollar today, as the IMF forecast a slow economic recovery globally. EUR/USD is currently trading at 1.4870.

Producer Price Index (PPI) advanced 0.3% in October reverting its previous month trend when it declined 0.6%. The growth was below forecasts that suggested an increase of 0.6%.

Net long-term purchases of the U.S. securities by the foreign investors reached $40.7 billion in September, jumping from $34.2 billion in the previous monthly reading. This result surprised analysts positively as they excepted the level of purchases to be at $27.3 billion.

Industrial production and capacity utilization rose in October but did not meet traders’ expectations. Production expanded 0.1% from a previous reading showing an increase of 0.6%, and below expectations that suggested a rise of 0.4%. Capacity utilization in the total industry climbed from 70.5% in the previous reading to 70.7%, below forecasts that indicated a rise of 0.4%.

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

3 Responses to “EUR/USD Down Despite Disappointing U.S. Data”

  1. rob matysiak

    This was inevitable. The dollar will continue to sink even further as U.S. trade deficit continues to rise. Expect big surprises.


    Andrei Reply:

    Actually, the dollar rose today.


  2. Mark

    With Building permits and CPI out today, we shall see which way the risk aversion brigade pull. So far bad figures have boosted the equities and taken the USD with them. CPI core m/m expected at 0.1, any deviation greater than 0.2 should impact. So far today the Euro has bees strong, I expect it to continue with risk.


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