EUR/USD was higher today as falling yields for European
bonds had a positive effect on the market sentiment. The euro retained its
gains even as the US Federal Reserve hasn’t mentioned quantitative easing in
its monetary policy statement. Durable goods orders were also negative for the
dollar, falling much more than predicted.
Durable goods orders edged down 4.2% in March. Analysts
expected a drop, but only by 1.5%. The February increase was revised from 2.2%
to 1.9%. (Event A on the chart.)
Crude oil inventories increased by 4.0 million barrels,
while total motor gasoline inventories decreased by 2.2 million barrels last
week. (Event B on the chart.)
FOMC said its monetary policy statement that the economy is
expanding with moderate and the rate of growth is expected to be moderate for
some time. (Event C on the chart.) The statement noted improvement of the
employment and housing markets, but added that “the unemployment rate has
declined but remains elevated” and ”the housing sector remains depressed”. The
comments weren’t different from the previous ones and it’s no surprise that the
monetary policy remained the same:
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