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EUR/USD Goes Down as Traders Wait for Signs from Fed & NFP

September 28, 2016 by

EUR/USD went down today, though losses were limited. Several Federal Reserve members are going to speak today, and traders hope to hear something that might reveal Fed’s plans for the future of monetary policy. The most important speaker, Fed Chairperson Janet Yellen, already spoke today but did not give any clues. Therefore, perhaps market participants are going to focus more on the next week’s nonfarm payrolls. The previous employment report was not particularly good and missed market expectations. If the same happens again, hopes for additional monetary tightening this year will likely be squashed and the dollar will go down.

Durable goods orders were basically unchanged in August while forecasters had predicted a drop by 1.0%. The previous month’s increase was revised from 4.4% down to 3.6%. (Event A on the chart.)

Crude oil inventories fell by 1.9 million barrels last week instead of rising 2.4 million as analysts had predicted. Still, the stockpiles remained near the record levels for this time of year. Total motor gasoline inventories rose by 2.0 million barrels. (Event B on the chart.)

EUR/USD as of 2016-09-28

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