Sumary of Forexlive America’s FX news wrap: ECB keeps rates unchanged, but policy makers are divided:
- Forex news for North American trading on July 22, 2021The ECB kept rates unchanged and the Pres Lagarde commented that:We want durable 2% inflation.
- The price of the EURUSD chopped in an up and down range of about 42 pips immediately after the event.
- That range was was later widened to 72 pips (with extensions higher and lower) by the end of the day.
- Although lower on the day by about 26 pips, the lowest low was able to stay above the low from Tuesday’s trading at 1.1755 and the low from Thursday at 1.17512. The low price reached 1.17567. The price is trading at 1.1768 near the end of the day.
- In other news today, the existing home sales came in a touch weaker than expectations at 5.86 million versus 5.9 million.
- Horton, the largest US homebuilder, reported strong earnings today but shares fell after it said sales orders tumbled by 16.5% in the quarter.
- The price of lumber however has started to rotate back to the downside and trades near end of 2020 levels at $716.90 after surging to a high of $1733 reached on May 10.In the forex market today, the GBP is ending as the strongest of the majors followed by the AUD.
- For the GBPUSD, it rose above the 50% retracement of the months trading range at 1.17403 and stay above that level in the New York session (it tested the level and found buyers).