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EUR/USD Turns Down on Fed Tapering Speculations

December 24, 2013 by

EUR/USD ticked down today as traders were speculating that the Federal Reserve may continue tapering of stimulus. Indeed, several Fed members were speaking this week about such possibility. Data from the United States was favorable, supporting such speculations. The rest of the week will be light on economic reports because of the Christmas holiday.

Durable goods orders climbed 3.5% in November after falling 0.7% in October. Analysts have predicted a smaller increase by 1.7%. (Event A on the chart.)

Richmond Fed manufacturing index remained at 13 in December, unchanged from November, while market participants have hoped for a small increase to 15. (Event B on the chart.)

New home sales were at the seasonally adjusted annual rate of 464k in November, below the revised October rate of 474k (444k unrevised), but above the median forecast of 449k. (Event B on the chart.)

EUR/USD for 2013-12-24

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