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EUR/USD Consolidates as Traders Doubt Fed Rate Hike

February 25, 2016 by

EUR/USD stayed in a consolidation mode, trading little changed, as fundamentals did not help the currency pair to establish a trend. On one hand, the positive report on US durable goods sales fueled the dollar’s strength. On the other, doubts about ability of the Federal Reserve to raise interest rates this year did not allow the greenback to rise against the euro.

Initial jobless claims rose by 10k to 272k last week, in line with expectations of most analysts. (Event A on the chart.)

Durable goods orders climbed 4.9% in January, exceeding the forecasts of a 3.0% increase by a wide margin. The gain almost erased the previous month’s big drop by 5.0%. (Event A on the chart.)

EUR/USD as of 2016-02-25

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