Home / Forex & Currency Exchange News / EUR/USD Shaken by FOMC Decision

EUR/USD Shaken by FOMC Decision

The euro slid against the US dollar following the Fed’s announcement of its interest rate decision today. Even before the news, EUR/USD has been trading with a bearish bias. After the release, the currency pair plummeted.

Durable goods orders fell sharply by 4% in June, following 2.8% decline in May (revised negatively from 2.2% drop). The median forecast was pointing at 1.4% decline. (Event A on the chart.)

Pending home sales went up by 0.2% in June — much better than the drop by 3.7% reported for May but worse than forecast of 1.2% gain. (Event B on the chart.)

US crude oil inventories increased by 1.7 million barrels during the week ending July 22. Last week saw a decrease by 2.3 million barrels. Forecast for today’s report was for a fall by 2 million barrels. Meanwhile, total motor gasoline inventories added 1.1 million barrels. (Event C on the chart.)

FOMC decided to leave interest rates on hold at 0.25%-0.50% as expected. (Event D on the chart.) The statement indicated more optimism than the one released during the last meeting in June:

Job gains were strong in June following weak growth in May. On balance, payrolls and other labor market indicators point to some increase in labor utilization in recent months. Household spending has been growing strongly but business fixed investment has been soft.

EUR/USD as of 2016-07-27

If you have any comments on the recent EUR/USD action, please reply using the form below.

Posted on Forex blog. Click Here For Original Source Of The Article

About Louie Lewis

Louie Lewis
Successful forex trading starts with you first. Then comes the actual strategies and techniques. I have been involved with forex and forex trading for a few years now. It is a wonderful way to build wealth. The learning never stops and I want to help others along their journey into this wonderful market of opportunity.

Check Also

Large Speculators and the House of Pain

Large Speculators and the House of Pain

By The Gold Report Source: Michael J. Ballanger for Streetwise Reports   02/18/2018 Every bottom in gold is characterized by massive long liquidation by the Large Specs, precious metals analyst Michael Ballanger states. This week’s COT report once again confirms that the Large Speculators are arguably the stupidest group of gold traders in existence. To be […]

Leave a Reply

Your email address will not be published. Required fields are marked *