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EUR/USD Attempts to Rise After Better-than-Expected Eurozone GDP Report, Fails to Keep Gains

October 30, 2020 by

EUR/USD was trading in a range for the most part during Friday’s session. The currency pair did not show a strong reaction immediately after the release of a much better-than-expected eurozone GDP report (event A on the chart) but attempted to rally afterward. Yet the pair has retreated almost immediately after starting the rally and is currently trading at about the opening level. As for US macroeconomic data, it was fairly decent today.

Personal income and spending rose in September more than markets were expecting. Personal income increased by 0.9% versus the market consensus of 0.3%. Personal spending increased by 1.4%, beating the median forecast of 1.0%. Personal income fell by 2.5% (revised from 2.7%) and personal spending rose by 1.0% in August. Core PCE inflation was at 0.2%, matching forecasts, down from 0.3% in the previous month. (Event B on the chart.)

Chicago PMI fell to 61.1 in October from 62.4 in September. Analysts had predicted an even bigger drop to 58.2. (Event C on the chart.)

Michigan Sentiment Index rose to 81.8 in October from 80.4 in September according to the revised estimate. Market participants were expecting the same 81.2 figure as in the preliminary report. (Event D on the chart.)

If you have any comments on the recent EUR/USD action, please reply using the form below.

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