EUR/USD is showing little movement on Friday, as the pair trades slightly below the 1.28 line in the European session. On Thursday, US Unemployment Claims dropped to 264 thousand, while the Philly Fed Manufacturing Index and Industrial Production both beat estimates. There is just one Eurozone release on Friday, with Deutsche Bundesbank President Jens Weidmann speaking at an event in Riga, Latvia. In the US, it’s another busy day, with the release of Building Permits and the UoM Consumer Sentiment. As well, Federal Reserve Chair Janet Yellen will deliver remarks at an event in Boston.
Earlier in the week, US retail sales and inflation numbers sagged, and the euro took full advantage, gaining over 100 points against the dollar. Core Retail Sales dipped 0.2%, its first decline since April 2013. It was a similar story with Core Retail Sales, which posted a decline of 0.3%, its first loss since January. This points to a decrease in consumer spending, a key component of economic growth. Meanwhile, PPI fell by 0.1%, after a reading of 0.0% a month earlier. All three events missed their estimates.
There was better news on Thursday, as US Unemployment Claims dropped to 264 thousand, marking a 14 -year low. The estimate stood at 286 thousand. Manufacturing numbers were a mix, as Industrial Production gained 1.0%, its best showing since November. The Philly Fed Manufacturing Index dipped to 20.7 points, but this beat the estimate of 19.9 points.
EUR/USD 1.2785 H: 1.2815 L: 1.2781
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