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EUR/USD Flat as Traders Wait for Fed

January 26, 2016 by

EUR/USD trades flat currently after attempting to rally and to decline but failing to find direction. US economic data was of little help in determining trend as it was mixed. Now, traders wait for tomorrow’s monetary policy announcement from the Federal Reserve. While most market participants do not expect the Fed to change its monetary policy the next month after it hike interest rates, many are worried that the US central bank may issue a dovish statement. Ultimately, whatever the Fed says, it will likely have a tremendous impact on markets.

S&P/Case-Shiller home price index demonstrated an annual growth of 5.8% in November which was above the predicted increase of 5.7% and the previous month’s gain of 5.5%. The index was up 0.1% on a monthly basis. (Event A on the chart.)

Flash Markit services PMI went down from 54.3 in December to 53.7 in January, falling below the 53.9 level forecasted by experts. The index showed the slowest expansion of the sector since December 2014. (Event B on the chart.)

Consumer confidence climbed from 96.3 in December to 98.1 in January, far above the value of 96.6 that was promised by forecasters. (Event C on the chart.)

Richmond Fed manufacturing index was at 2 in January. The reading was below the median forecast of 3 and the December’s figure of 6. (Event C on the chart.)

EUR/USD as of 2016-01-26

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