EUR/USD Heads to Monthly Gain

EUR/USD jumped today for the second trading session, heading to a small monthly gain even though it was falling in the first half of the month following the big drop in May. Today’s data from the United States was not bad, while European indicators, including the inflation report (event A on the chart), were weaker than market participants have expected, yet this did not prevent the rally of the currency pair.
Chicago PMI slipped from 65.5 in May to 62.6 in June, missing the median estimate of 63.2. (Event B on the chart.)
Pending home sales sharply jumped 6.1% in May. The increase was much bigger than predicted 1.4% and the previous month’s rise of 0.5%. This was the biggest monthly gain since April 2010. (Event C on the chart.)
On Friday (June 27), a revised estimate of Michigan Sentiment Index was released, showing an increase from 81.9 in May to 82.5 in June, which was in line with market expectations of 82.2 and above the preliminary reading of 81.2. (Not shown on the chart.)


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