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EUR/USD Rallies After US-Mexico Trade Talks Spur Optimism

August 28, 2018 by

EUR/USD rallied for the third consecutive trading session today amid risk appetite on the Forex market. The positive outcome of the preliminary trade talks between the United States and Mexico led to hopes that an agreement with other US trade partners, including the European Union, can be reached. The currency pair halted its rally after the release of positive US macroeconomic data but retained its earlier gains.

S&P/Case-Shiller home price index rose 6.3% in June from the same month a year ago. The actual increase was a bit smaller than 6.4% predicted by analysts and 6.5% registered in May. Month-on-month, the index was up 0.5%. (Event A on the chart.)

Consumer confidence climbed to 133.4 in August from the July’s positively revised reading of 127.9 (127.4 before the revision). Experts were anticipating a decrease to 126.6. (Event B on the chart.)

Richmond Fed manufacturing index advanced from 20 in July to 24 in August. In this instance, forecasters were also wrong, predicting a decline to 18. (Event B on the chart.)

On Friday, a report on durable goods orders was released, showing a drop by 1.7% in July, much more than forecasters had predicted — 0.7%. Furthermore, the June increase got a downward revision from 1.0% to 0.8%. (Not shown on the chart.)

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

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