EUR/USD Pays No Heed to Slowing Eurozone Inflation

EUR/USD rallied today even though the report released during the trading session showed that eurozone inflation slowed, missing analysts’ expectations. (Event A on the chart.) Experts explained the euro’s good performance by expectations of discussion about stimulus exit at the next week’s policy meeting of the European Central Bank. Additionally, US macroeconomic data released over the current session was disappointing, helping the euro to solidify its gains versus the dollar.
Chicago PMI dropped from 58.3 in April to 55.2 in May, falling below the forecast level of 57.0. (Event B on the chart.)
Pending home sales fell 1.3% in April from March instead of rising by 0.7% as analysts predicted. The indicator was down by 0.9% in March. (Event C on the chart.)

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