EUR/USD Drops as Traders Wait for FOMC, PPI Shows Stable Growth

EUR/USD dropped today as US producer inflation remained stable. Now, traders focus on the meeting of the Federal Open Market Committee. The FOMC started the two-day gathering today and will announce its decision tomorrow. It is widely expected that the Committee will raise interest rates further.
PPI rose 0.4% in November, seasonally adjusted, in line with expectations and the same as in October. (Event A on the chart.)
Treasury budget deficit widened from $63.2 billion in October to $138.5 billion in November. The shortage was bigger than $135.2 billion predicted by analysts. (Event B on the chart.)

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