Attempts to Rally, Looks for Direction

 

EUR/USD attempted to advance today, but trimmed its gains and currently trades in a range. The European Union released the bailout for Greece, improving the outlook for the eurozone. At the same time, fears of the fiscal cliff in the United States eat away confidence of Forex traders, weakening the currency pair. US consumer prices are falling, according to today’s report, and that does not help either.
CPI fell 0.3% in November, more than was predicted (0.2%). The drop followed the increase by 0.1% in October. (Event A on the chart.)
Industrial production and capacity utilization grew in November. Production advanced 1.1% following the 0.7% decline in October. Market participants have expected growth by 0.3%. Utilization increased from 77.7% to 78.4% last month. The median forecast was 77.9%. (Event B on the chart.)