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EUR/USD Jumps After Remarks About Euro’s Weakness

January 31, 2017 by

EUR/USD rallied strongly today after remarks from Peter Navarro, the head of Donald Trump’s new National Trade Council, who claimed that Germany uses the weakness of the euro as an advantage against its main trading partners. Economic data was beneficial to the currency pair as well. Eurozone inflation beat expectations (event A on the chart), while the US consumer confidence and the Chicago PMI trailed forecasts.

S&P/Case-Shiller home price index rose 5.3% in November from a year ago, exceeding market expectations of a 5.0% increase and October’s growth by 5.1%. Month-on-month, the index was up 0.2%. (Event B on the chart.)

Chicago PMI fell from 53.9 in December to 50.3 in January — the lowest level since May 2016. That was a nasty surprise to traders who were expecting an increase to 55.1. (Event C on the chart.)

Consumer confidence slid to 111.8 in January from 113.3 in December. The drop predicted by analysts was not as big, just to 112.6. (Event D on the chart.)

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

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