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EUR/USD Fails to Extend Rally to Sixth Session

March 27, 2020 by

EUR/USD declined today following five consecutive sessions of gains. While the currency pair was attempting to extend its rally at the start of Friday’s trading session, currently the pair trades below the opening level. The coronavirus pandemic continued to affect markets negatively, and the stock markets reversed earlier gains. Meanwhile, US macroeconomic data continued to look surprisingly good for the most part, though it is important to remember that most reports show delayed results, which do not reflect the most recent developments. The more up-to-date Michigan Sentiment Index showed a huge drop in consumer confidence this month.

Personal income and spending rose in February at the same pace as in January. Personal income rose by 0.6% versus the forecast increase of 0.4%. Personal spending rose by 0.2%, matching forecasts. Core PCE inflation remained at 0.2%, also in line with analysts’ predictions. (Event A on the chart.)

Michigan Sentiment Index showed a massive drop from 101.0 in February to 89.1 in March according to the revised estimate. That was a far worse reading than the preliminary estimate of 95.9 and also below the median forecast of 90.0. (Event B on the chart.)

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

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