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Week Begins Favorably for EUR/USD

December 16, 2013 by

Data from the United States and Europe was rather mixed today, but traders paid more attention to positive European reports, driving EUR/USD higher. This week will be very important for the dollar as for the last time Ben Bernanke will participate in Federal Reserve meeting as Chairman and market participants wait anxiously what decision he will make before leaving the office.

NY Empire State Index was at 1.0 in December. The reading was considerably better than November’s -2.2, but nowhere near predicted 4.9. (Event A on the chart.)

Revised nonfarm productivity rose 3.0% in the third quarter of 2013, in line with forecasts, compared to the reading of 1.9% and the growth of 2.3% in the second quarter. (Event A on the chart.)

Net foreign purchases increased to $35.4 billion in October, while they were expected to stay at the revised September value of $31.3 billion ($25.5 billion before the revision). (Event B on the chart.)

Both industrial production and capacity utilization rate exceeded expectations in November. Production grew 1.1% after rising 0.1% in October, while the median forecast promised 0.6% growth. Capacity utilization from 78.2% to 79.0%, above expected 78.5%. (Event C on the chart.)

On Friday (December 13), a report on PPI was released, showing a decrease by 0.1% in November, which followed the 0.2% drop in October. Analysts have expected no change. (Not shown on the chart.)

EUR/USD for 2013-12-16

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