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EUR/USD Post-FOMC: Retains Downward Bias

March 20, 2014 by

EUR/USD continued to move down today after yesterday’s drop caused by the monetary policy meeting of the Federal Open Market Committee. The FOMC statement made a strong impression on Forex traders, spurring them to buy dollars. Today’s data economic data from the United States was good for the most part, giving additional boost to the US currency.

Initial jobless claims rose from 315k to 320k last week, but remained below the level of 327k that was anticipated by specialists. (Event A on the chart.)

Existing home sales declined to the seasonally adjusted annual rate of 4.60 million in February from 4.62 million in January instead of rising to 4.65 million as was predicted by analysts. (Event B on the chart.) The report noted:

Home prices continued to show solid growth in most of the country due to limited inventory conditions, but rising prices and severe winter weather caused existing-home sales to slip in February

Philadelphia Fed manufacturing index jumped from -6.3 in February to 9.0 in March, exceeding market expectations of 4.2. (Event B on the chart.)

Leading indicators rose 0.5% February, outpacing the expected growth of 0.3%. The January change was revised from 0.3% to 0.1%. (Event B on the chart.)

EUR/USD-2014-03-20

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