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EUR/USD Rallies Ahead of Trump’s Press Conference

May 29, 2020 by

EUR/USD was rising today amid risk aversion ahead of the press conference of US President Donald Trump who is going to announce a response to the increase of China’s control over Hong Kong. While the currency pair has retreated a bit from the session highs by now, it is still trading far above the opening level. US macroeconomic data released over the trading session was almost universally bad with the exception of personal income.

Personal income jumped by 10.5% in April — a total surprise to market participants considering that experts had predicted a drop of 7.0%. The previous month’s decline got a revision from 2.0% to 2.2%. Personal spending, on the other hand, slumped by 13.6%, exceeding even the pessimistic consensus forecast of a 12.6% decline. The March fall got a revision from 7.5% to 6.9%. Core PCE inflation was at -0.4%. That is compared with the expected reading of -0.3%. The previous month’s reading got a revision from -0.1% to 0.0%. (Event A on the chart.)

Chicago PMI fell from 35.4 in April to 32.3 in May, hitting the lowest level since March 1982. The actual reading frustrated specialists who had predicted an increase to 40.1. (Event B on the chart.)

Michigan Sentiment Index rose to 72.3 in May from 71.8 in April according to the revised estimate. Traders were expecting the same 73.7 figure as in the preliminary estimate. (Event C on the chart.)

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

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