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EUR/USD Extends Losses as Eurozone Inflation Unexpectedly Slows

January 31, 2014 by

EUR/USD extended its drop today as US consumer spending continued to rise. Additionally, eurozone inflation unexpectedly slowed this month (event A on the chart), adding to the downside pressure for the currency pair.

Personal income was almost unchanged in December, while it rose 0.2% in November and analysts have expected an increase by the same rate last month. Meanwhile, personal spending grew 0.4%, matching specialists’ expectations, after rising 0.6% in the previous month. (Event B on the chart.)

Chicago PMI fell to 59.6 in January from revised 60.8 in December, matching forecasts. The December value itself was revised upwardly from 59.1. The report said that the index “remained firm and consistent with the recent pick-up in GDP”. (Event C on the chart.)

Michigan Sentiment Index fell from 82.5 in December to 81.2 in January according the revised estimate. This is compared to the preliminary reading of 80.4 and analysts’ the prediction of 81.1. (Event D on the chart.)

EUR/USD-2014-01-31

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