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EUR/USD Remains Weak After Fed Tapering

December 19, 2013 by

EUR/USD remained subdued after yesterday’s stimulus tapering announcement from the Federal Reserve. Today’s US data trailed forecasts for the most part, but this did not help the currency pair to regain strength.

Initial jobless claims increased from 369k to 379k last week instead of falling to 336k as was predicted by analysts. (Event A on the chart.)

Existing home sales dropped to the seasonally adjusted annual rate of 4.90 million in November from 5.12 million in October, being below the median forecast of 5.04 million. Sales were also down from a year ago, the first annual decline in 29 months. The drop was explained mainly by restrained housing supply. (Event B on the chart.)

Philadelphia Fed manufacturing index was at 7.0 in December, little changed from November’s 6.5. Economists have hoped for bigger increase to 10.3. (Event B on the chart.)

US leading indicators increased 0.8 percent in November, in line with specialists’ expectations, following the 0.1 percent increase in October. (Event B on the chart.)

EUR/USD for 2013-12-19

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