Volatility covered EURUSD. Overview for 17.06.2020

The major currency pair is trading more actively thanks to a great deal of news and statistics. 

EURUSD is stable on Wednesday after falling the night before. At the moment, the pair is quickly changing direction due to volatile external background. The current quote for the instrument is 1.1274.

The statistics published yesterday boosted the American currency. The Retail Sales added 17.7% m/m in May after losing 14.7% m/m in April and against the expected reading of +7.9% m/m. The Core Retail Sales expanded by 12.4% m/m after being -15.2% m/m the month before and against the expected reading of +5.5% m/m.  

The Industrial Production in the USA added 1.4 m/m in May after plummeting by 12.5% m/m in the previous month and against the expected reading of +3.0% m/m. The Capacity Utilization Rate went up to 64.8%, which is quite good.

Yes, most reports fell short of expectations but these expectations were also rather approximate. No one could really imagine true damage to the economy done by the pandemic, so it was extremely difficult to estimate how soon the country would recover. 

Later in the afternoon, the USA is scheduled to report on the Housing Starts in May, which is expected to recover from 0.89M to 1.10M. Also, it will be interesting to see the Building Permits, which may show 1.23M. If the actual readings are at least as good as expected, the USD will get significant support.