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Positive US Data Prevents EUR/USD from Rising Further

November 22, 2016 by

EUR/USD halted its long decline and rose on Monday but was unable to extend the rise on Tuesday. The currency pair lost its upward momentum as economic data released from the United States over the trading session was good and exceeded analysts’ expectations, providing support to the dollar.

Richmond Fed manufacturing index posted a reading of 4 in November after logging a reading of -4 in October. Experts had predicted a smaller increase to 1. (Event A on the chart.)

Existing home sales rose to the seasonally adjusted annual rate of 5.60 million in October from the upwardly revised 5.49 million in September (5.47 million before the revision). Forecasts have completely missed the market, promising a drop to 5.43 million. (Event A on the chart.)

On Friday, a report on leading indicators was released, showing 0.1% growth in October, in line with market expectations, after rising 0.2% in September. (Not shown on the chart.)

EUR/USD as of 2016-11-22

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