EUR/USD Moves Down for Second Day

The rally of EUR/USD following the Federal Reserve policy announcement was short-lived, and the currency pair dropped on Friday. It continued to move down today as the market is still digesting the Fed comments. The weak US housing report and the victory of the Syriza party in Greek elections did not provide support for the currency pair.
Existing home sales fell to the seasonally adjusted annual rate of 5.31 million in August from the slightly revised 5.58 million in July. The actual reading was below the consensus forecast of 5.50 million. (Event A on the chart.)
On Friday, a report about leading indicators was released, showing an increase of 0.1% in August that trailed analysts’ expectations of 0.2%. The indicators fell 0.2% during the preceding month. (Not shown on the chart.)


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