EUR/USD dropped to the lowest level since November at today’s trading session as positive macroeconomic data from the United States suggested that the Federal Reserve may start monetary tightening sooner than was expected. Meanwhile, the European Central Bank shows signs that it is ready for additionally monetary easing. The currency pair was also under pressure from the risk aversion sentiment as European Union officials gather in Brussels today to discuss additional sanctions against Russia.
CPI rose 0.3% in June, matching expectations, after rising 0.4% in May. Core CPI grew 0.1%, somewhat below the predicted rate of 0.1%. (Event A on the chart.)
Richmond Fed manufacturing index was at 7 in July, above the forecast figure of 5 and June’s 4. (Event B on the chart)
Existing home sales jumped to the seasonally adjusted annual rate of 5.04 million in June, above the forecast value of 4.98 million and the May revised reading of 4.91 million. (Event B on the chart)
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