EUR/USD continued to move down for the third straight trading session today as markets are stabilizing after China’s scare at the start of the week. The Asian nation took stimulating measures to support its slowing economic growth and the collapsing stock market. This caused EUR/USD to reverse its huge jump that the currency pair has demonstrated on Monday. The dollar is strengthening versus the euro despite speculations that the Federal Reserve is likely not going to start monetary tightening as soon as the next month.
Preliminary (second) estimate of US GDP showed growth by 3.7% in Q2 2015. Not only it was above the first estimate of 2.3% but also beat the average forecast figure of 3.2%. And of course it was far better than the meager Q1 growth of 0.6%. (Event A on the chart.)
Initial jobless claims were at the seasonally adjusted rate of 271k last week compared to 277k the week before the value of 275k predicted by analysts. (Event A on the chart.)
Pending home sales rose 0.5% in July, almost three times slower than the forecast rate of 1.3%. Nevertheless, the reading was better than the June’s drop by 1.7%. (Event B on the chart.)
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