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EUR/USD Retreats After Post-Referendum Rally

December 6, 2016 by

EUR/USD fell today after yesterday’s rally that followed the Italian referendum. Today’s economic data from the United States was mixed, providing no reason for the currency pair to move either up or down. Meanwhile, traders wait for Thursday’s monetary policy decision from the European Central Bank. No changes to the existing policy and stimulus are expected, but it will be interesting to hear what the bank says about its plans for the future.

Revised nonfarm productivity demonstrated the same 3.1% growth in Q3 2016 (quarter on quarter) as in the preliminary estimate, showing the first increase after three consecutive declines. Analysts were close with their predictions of a 3.2% increase. The indicator fell 0.2% in the previous three months. (Event A on the chart.)

US trade balance deficit increased to $42.6 billion in October, up from $36.2 billion in September, revised. The actual value was above the median forecast of $41.5 billion. (Event A on the chart.)

Factory orders climbed 2.7% in October, exceeding market expectations of 2.5%. The September gain was revised from 0.3% up to 0.6%. (Event B on the chart.)

EUR/USD as of 2016-12-06

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