EUR/USD edged higher today as market participants speculated that the Federal Reserve’s statement will not be as hawkish as was previously thought and the Fed will not drop the pledge to keep interest rates low for a “considerable time”. The Federal Open Market Committee starts its policy meeting today and will announce its decision tomorrow. The currency pair retreated after the initial surge but remained above the opening level.
PPI was unchanged in August, seasonally adjusted, while analysts expected growth by at least the same rate as in July — 0.1%. (Event A on the chart.)
Net foreign purchases were at -$18.6 billion in July, almost the same as the June’s value, while specialists hoped for $24.3 billion growth. (Event B on the chart.)
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