EUR/USD Crashes as FOMC Starts Meeting

EUR/USD tumbled today ahead of tomorrow’s announcement from the Federal Reserve. The Fed starts its two-day policy meeting today and will announce its decision tomorrow. The currency pair was also hit by fears of the so-calledBrexit.
Retail sales grew 0.5% in May, a bit more than analysts had predicted (0.4%) but slower than the April’s 1.3% rate of growth. (Event A on the chart.)
Import and export prices demonstrated a strong gain in May. Import prices climbed 1.4% versus the forecast increase of 0.8% and the previous month’s gain of 0.7% (revised positively from 0.3%). Export prices jumped 1.1% after rising 0.5% in April. (Event A on the chart.)
Business inventories were up 0.1% in April. That is compared to the predicted increase of 0.2% and the March’s revised expansion by 0.3%. (Event B on the chart.)

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