EUR/USD Gains on Improving Confidence, Halts Rally

EUR/USD attempted to rally today on reports that showed an improvement of the economic sentiment in Germany and the whole eurozone. (Event A on the chart.) The rally stalled and the currency pair is moving down to the opening level right now. Tomorrow, the Federal Reserve announces its policy decision and hold press-conference. It will likely have a big impact on the Forex market.
CPI ticked up 0.1% in August, while analysts have hoped for the same rate of growth as in July — 0.2%. (Event B on the chart.)
US net foreign purchases rose by $31.1 billion in July. The reading was much better than the forecast drop of $45.3 billion and the June fall of $67.0 billion. (Event C on the chart.)


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