EUR/USD Down as Market Prepares for Fed Announcement

EUR/USD declined during the Tuesday’s trading session as the Forex market was preparing for the Wednesday’s policy announcement from the Federal Reserve. The vast majority of market participants anticipate an interest rate lift-off, and such expectations boost the dollar against other currencies.
CPI was unchanged in November on a seasonally adjusted basis, in line with market expectations, after rising 0.2% in October. (Event A on the chart.)
NY Empire State Index was at -4.6 in December, indicating the fifth consecutive monthly decline of business activity for manufacturers. Still, the reading was better than -5.7 predicted by analysts and the November’s value of -10.7. (Event A on the chart.)
Net foreign purchases were at -$16.6 billion in October, below the September’s figure of $33.6 billion and nowhere near the forecast level of $32.4 billion. (Event B on the chart.)


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