Week Starts with Drop to New Low for EUR/USD

The start of this week was light on economic data, making traders pay more attention to future economic releases. Tomorrow’s manufacturing report for China was in the focus of discussion among market analysts, and traders speculated that the data may show lack of growth in China’s manufacturing sector. Such talks led to risk aversion on the Forex market, helping the dollar to gain on the euro. EUR/USD fell to a new low for the year.
Existing home sales fell to the seasonally adjusted annual rate of 5.05 million in August from the slight downwardly-revised rate of 5.14 million in July, disappointing those traders who were counting on a rise to 5.21 million. Still, sales are at the second-highest pace of 2014. (Event A on the chart.)
On Friday (September 19), a report on leading indicators was released, showing an increase by 0.2% in August, which missed analysts’ expectations of 0.4% and was below the July’s change of 1.1% (revised). (Not shown on the chart.)


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