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EUR/USD Maintains Downward Bias

February 20, 2014 by

The dollar continued to gain on the euro today even though US economic data was mostly disappointing yet again. The US currency is supported by yesterday’s FOMC minutes as well as today’s negative data from China. Political turmoil in some countries (like Thailand and Ukraine) also supports demand for the greenback as a safe asset.

Initial jobless claims slipped from 339k to 336k, about the same figure analysts have expected. (Event A on the chart.)

CPI increased 0.1% in January on a seasonally adjusted basis following the 0.2% increase in December, matching expectations. (Event A on the chart.)

Philadelphia Fed manufacturing index slumped from 9.4 in January to -6.3 in February. It was the first negative reading in nine months and nowhere near the forecast value of 9.2. (Event B on the chart.)

Leading indicators increased 0.3% in January following no change in December (revised down from 0.1% growth). Traders have hoped for a bigger increase by 0.5%. (Event B on the chart.)

Crude oil inventories increased by 1.0 million barrels last week and are in the upper half of the average range for this time of year. The actual increase was below the predicted value of 2.1 million and the previous week’s change of 3.3 million. Total motor gasoline inventories increased by 0.3 million barrels and are well above the upper limit of the average range. (Event C on the chart.)


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