EUR/USD dropped today after rallying for the most part of the last week. Traders expect for the result of the Federal Reserve meeting that starts today and will be concluded tomorrow. No major moves are expected, but Forex market participants hope to hear hints on stimulus tampering. The decline of pending home sales decreases chances for reduction of stimulus, but the dollar managed to gain today still.
Pending home sales fell 0.4% in June, less than was predicted by analysts (1.1%). The May’s growth was revised negatively from 6.7% to 5.8%. (Event A on the chart.)
On July 26, Michigan Sentiment Index was released, showing an increase from 84.1 in June to 85.1 in July, according to the revised estimate. The actual value was above the preliminary estimate of 83.9. The report said: “This persistently high level of confidence points toward a continued expansion in consumer spending
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