EUR/USD Flat After Yellen’s Testimony

EUR/USD was flat today with a slight downside bias. The dollar was not particularly strong as the testimony of Janet Yellen, Federal Reserve Chairperson, was more dovish than the market has counted on. Weak US macroeconomic indicators were not helping the greenback either. At the same time, today’s data showed that the eurozone remained in deflation, and this did not allow the euro to gain on the dollar.
S&P/Case-Shiller home price index rose 4.5% in December 2014 from a year ago, matching forecasts exactly. The reading was higher than 4.3% registered in the previous reporting period. Month-on-month, the index was up 0.05%. (Event A on the chart.)
Richmond Fed manufacturing index slipped from 6 to 0 in February. This totally surprised market analysts who expected the gauge to rise slightly to 7. (Event B on the chart.)
Consumer confidence eased to 96.4 in February from the January’s revised figure of 103.8, trailing market expectations of 99.6. (Event B on the chart.)

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