EUR/USD Fundamental analysis
The major pairs held another session in a narrow range and ended the trading day a bit below their opening. The investors’ inactivity was understandable, due to the news absence that could push volatility to a growth; moreover, the market went into the week waiting period of important events, such as the FOMC meeting minutes, GDP data for the U.S. and the July world's largest economy labor report. This caused a weak trading between predetermined ranges. The news across the United States could not make the investors happy yesterday and their mixed results did not cause any severe reactions which could become the balancing effect result.
The pending home sales release in the secondary market fell in June, with -1.1% m/m due to the expected growth of 0.5% m/m, while the Dallas Fed report issued the opposite trend - PMI in July improved to 12.7 vs. 11.4 earlier.
Japan continued to demonstrate inflation growth in June which was shown by the official data. The price increase largely contributed to the increasing sales tax rates, conducted in April which should help the Japanese authorities to reduce the state budget deficit.
The indicator value was at 3.4% in May. The Tokyo consumer prices rose on 2.8%, slightly higher than the forecast made by Reuters. The observed increase in price is largely due to the sales tax rate increase to 8%, conducted in April.