EUR/USD Fundamental Analysis: February 16, 2017
The USD slid back during the past trading session and went through a massive reversal of its recent gains which it had initially garnered during the start of the week. The EUR/USD pair surged by over 100 pips as a result of this recent reversal and is currently trading just over 1.0600 points, where it looks poised to increase further in value.
Yesterday the market saw the release of a slew of economic data from the US, specifically the CPI data and the retail sales data. In general, these set of data proved to be very good for the US, with the retail sales data coming in with a reading of 0.4%, exceeding market expectations of 0.1%. However, although the CPI data had a very positive reading and has exceeded market expectations as well, the wages data came in at 0.6%, prompting the wage growth year-on-year to come in at 0.0%, which led to the disappointment of the USD’s bulls. This was especially disappointing since the wages factors was the weakest link in the NFP report, and the CPI data reading only affirmed the lackluster wages data. Although the USD increased almost immediately after the EUR/USD dropped down towards 1.0520 points, the currency experienced reversions as the drop in the wages data began to take effect in the market, with the dollar bearing the brunt of this effect.
There are no major news releases coming from the European Union today, but the Philadelphian Manufacturing Index data and the Unemployment Claims data from the US will be released today. These set of data are not expected to induce that much volatility, and the EUR/USD pair would most likely continue its ranging and consolidation with bullish undertones for today.
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