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EUR/USD Retreats from Daily High on Thursday

December 22, 2016 (Last updated on December 23, 2016) by

EUR/USD rose for the second day today, though has retreated from the daily high and is moving down right now. Economic data released from the United States over the trading session was disappointing for the most part with few exceptions, most notable the upward revision of US gross domestic product in the final estimate. Analysts do not think that the longer-term uptrend of the US dollar is in danger and explained the current weakness by traders booking profits ahead of holidays.

US GDP rose 3.5% in Q3 2016 according to the third and final estimate. That is compared to the analysts’ forecasts of 3.3%, the preliminary reading of 3.2%, and the 1.4% in Q2. (Event A on the chart.)

Initial jobless claims climbed from 254k to 275k last week while experts had predicted the indicator to stay little changed at 255k. (Event A on the chart.)

Durable goods orders fell 4.6% in November after rising at exactly the same rate in October (revised, the increase was 4.8% before the revision). Forecasters were predicting a bigger drop by 4.9%. (Event A on the chart.)

Personal income demonstrated no change in November while specialists had promised an increase by 0.3%. The October gain was revised slightly down from 0.6% to 0.5%. Personal spending was up 0.2% but also missed forecasts, which were pointing at the same 0.4% as in October (revised upwardly from 0.3%). (Event B on the chart.)

Leading indicators were also unchanged in November, trailing market expectations of a 0.2% increase. The index rose 0.1% in October. (Event B on the chart.)

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

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