The major currency pair has been consolidating for the second consecutive day; it is barely moving today.
EURUSD is consolidating not far from two-year highs and trying to hold its positions. The current quote for the instrument is 1.1730.
The statistics published yesterday showed that the CB Conference Board dropped got worse by dropping from 98.3 points in June to 92.6 points in July. The predicted reading implied some sort of decline but only to 94.0 points.
The components of the report show why the indicator decreased: the Expectations Index – based on consumers’ short-term outlook for income, business, and labor market conditions – decreased from 106.1 points in June to 91.5 points this month. The percentage of consumers expecting business conditions will improve over the next six months declined from 42.4% to 31.6%, while those expecting business conditions will worsen increased from 15.2% to 19.3%.
It’s not the best signal for market players to get.
Yesterday, the US Federal Reserve started its another meeting, which will be over on Wednesday night. No changes or revisions in the regulator’s monetary policy are expected but investors are hoping that the Fed will comment on inflation and may change the future outlook in it. For example, the regulator may target inflation in order to compensate for previous declines, and that may be a trigger for the USD movement tonight.
Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex bears no responsibility for trading results based on trading recommendations described in these analytical reviews.