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EUR/USD Slips Back After Huge Jump

August 25, 2015 (Last updated on August 26, 2015) by

EUR/USD soared 2 percent on Monday even though the Forex market was driven by risk aversion as the Chinese stock market plunged yet again. Today, the currency pair retreated but is far from erasing its momentous gains.

S&P/Case-Shiller home price index rose 5.0% in June from a year ago, at the same rate as in the previous month and in line with expectations. Month-on-month, the indicator was up 1.0%. (Event A on the chart.)

Flash Markit services PMI was down to 55.2 in August from 55.7 in July but exceeded the median forecast of 54.1 nevertheless. (Event B on the chart.)

Richmond Fed manufacturing index sank from 13 in July to 0 in August, being far below the predicted value of 9. (Event C on the chart.)

Consumer confidence jumped from 91.0 in July to 101.5 in August, far above the level of 92.8 predicted by experts. (Event C on the chart.)

New home sales were at the seasonally adjusted annual rate of 507k in July, above the June’s level of 481k but still slightly below the forecast value of 512k. (Event C on the chart.)

On Friday (August 21), a report on flash Markit manufacturing PMI was released, showing a drop from 53.8 in July to 52.9 in August while analysts had expected the index to stay little changed. (Not shown on the chart.)

EUR/USD for 2015-08-25

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