The main currency pair is trying to benefit from the American bonds profitability decrease.
EURUSD is changing direction again, but its volatility is no longer a surprise for anyone. The current quote for the instrument is 1.1700. The upside movement is not too dynamic, but careful, due to a lot of external risks.
The key negative factor for the USD is the decrease of the American bonds profitability. This is exactly what pulled the American currency down and let the main currency pair continue recovering.
At the same time, the statistics from the USA were quite positive: it supported the USD in some way and prevented it from weakening too much. The New Home Sales increased up to 0.689M in May after being 0.646M the month before and against the expected reading of 0.665M. The indicator, which includes new single‑family houses, rose up to the highest level over the last six months (seasonally adjusted). By the way, the April number was revised downwards.
As a rule, this indicator is rather unstable, because it is influenced by a lot of changeable factors, from weather conditions to public confidence in the government.
There will be no statistics from the Euro Area today while the USA is planning to report on several secondary indicators. One should pay attention to the CB Consumer Confidence.
Orgin: RoboForex
