EUR/USD advanced today, erasing its previous losses, as Federal Reserve Chairman Ben Bernanke explained today that the US labor market hasn’t recovered yet and accommodative monetary policy is still necessary. (Event A on the chart.) On top of that, data showed that the housing market isn’t in good shape either. Earlier, the euro slid as traders were worried that the debt crisis may again spread across Europe.
Pending home sales unexpectedly fell 0.5% in February, while forecasters predicted an increase by 1.0%. Sales were up 2.0% in January. (Event B on the chart.)
On Friday, a report on new home sales was released, showing a drop from 318k in January to 313k in February. The report frustrated analysts who expected an increase to 326k. (Not shown on the chart.)
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