While all US figures released today were second tier numbers, the disappointment in all 4 already turned them into a top tier mover.
The US dollar is heading lower towards the end of the week, with EUR/USD battling 1.35, the level seen before the surprising rate cut by Draghi.
Industrial production dropped by 0.1% instead of rising by the same scale. The capacity utilization rate eased from 78.3% to 78.1%.
Beforehand, import prices plunged by 0.7%, significantly more than 0.4% expected. Also the Empire State Manufacturing Index for November came in negative at 2.2 points, contrary to +5 expected.
EUR/USD already climbed to 1.3504 before retreating to 1.3485 at the time of writing. Before the rate cut in the euro-zone, EUR/USD traded just above 1.35. It fell to 1.33 before recovering, and it eventually climbed back to just below 1.35.
Janet Yellen, which is set to inherit Ben Bernanke as the head of the Federal Reserve, will likely continue the exact same policy. In her testimony, she didn’t move from the current line.
If more data like this persists, a “Dectaper†remains off the cards. The key indicator is the jobs report for November, which is released before the next Fed meeting at December 18th.
