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EUR/USD Reverses Thursday’s Gains

November 13, 2015 by

EUR/USD was rising yesterday but erased its gains today even though economic data from the United States was mixed. Speculations about the possible December interest rate lift-off by the Federal Reserve continue to weigh on the currency pair. Additionally, growth of the eurozone economy trailed economists’ expectations. (Event A on the chart.) The euro attempted to rally despite the worse-than-expected data but failed.

Looking at US indicators released over Friday’s session, seasonally adjusted PPI dropped 0.4% in October instead of rising 0.2% as had been predicted by specialists. The index was down 0.5% in September. (Event B on the chart.)

Retail sales edged up 0.1% last month on a seasonally adjusted basis, trailing economists’ estimates of 0.3% growth. The previous month’s reading was revised to no change from the 0.1% increase. (Event B on the chart.)

Preliminary Michigan Sentiment Index was at 93.1 in November. The figure was far above the median forecast of 91.3 and the October value of 90.0. (Event C on the chart.)

Yesterday, several reports were released. (Not shown on the chart.)

Initial jobless claims remained unchanged at 276k last week while analysts had predicted a drop to 270k.

Crude oil inventories swelled by 4.2 million barrels last week, more than four times the forecast increase of 0.8 million and above the previous week’s gain of 2.8 million. Total motor gasoline inventories fell yet again, dropping by 2.1 million barrels, but remained well above the upper limit of the average range.

Treasury budget demonstrated a deficit of $136.5 billion in October, a somewhat bigger than $130.2 billion predicted by experts. The budget had a surplus of $91.1 billion in September.

EUR/USD for 2015-11-13

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