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EUR/USD Drops, Rebounds from Daily Low

March 31, 2020 by

EUR/USD fell today but has bounced from the daily low by now. Analysts speculated that the decline was a result of the demand for the greenback from firms at the end of the month and the quarter. US macroeconomic reports released yesterday and today were better than expected for the most part.

S&P/Case-Shiller home price index rose by 3.1% in January, year-over-year. That is compared with a 3.4% increase predicted by analysts and a 2.8% gain registered in the previous month. Month-on-month, the index was almost unchanged. (Event A on the chart.)

Chicago PMI dropped to 47.8 in March from 49.0 in February, though it was still above the median forecast of 44.1. (Event B on the chart.)

The report noted that the the coronavirus pandemic had a mixed impact on the index:

While some firms reported a rise in orders due to stockpiling by US customers, others noted a fall in new business COVID-19.

Consumer confidence dropped sharply to 120.0 in March from 132.6 in February. Nevertheless, it too was above the consensus forecast of 115.1. (Event C on the chart.)

Yesterday, a report on pending home sales was released, showing an increase of 2.4% in February instead of a drop of 1.8% predicted by experts. The sales were up 5.3% in the preceding month. (Not show on the chart.)

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

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