EUR/USD Consolidates Ahead of ECB Meeting

EUR/USD attempted to rally today but has retreated to the opening level by now. Traders wait for the outcome of talks between US President Donald Trump and European Commission President Jean-Claude Juncker, who will try to avoid starting trade wars, but many experts do not believe that the meeting will bring any meaningful results. Market participants also wait for tomorrow’s meeting of the European Central Bank.

New home sales were at the seasonally adjusted annual rate of 631k in June, down from the May’s negatively revised figure of 666k. Analysts had predicted an increase to 669k. (Event A on the chart.)

US crude oil inventories dropped by 6.1 million barrels last week, much more than experts had forecast — 2.6 million. The stockpiles rose 5.8 million the week before. Total motor gasoline inventories fell by 2.3 million barrels but remained above the five year average for this time of year. (Event B on the chart.)

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Posted on Forex blog.