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EUR/USD Rallies Despite Deflation in Eurozone, Dovish ECB Guidance

September 29, 2020 by

EUR/USD rose today despite dovish comments from European Central Bank President Christine Lagarde and reports that showed deflation in Germany and France. Market analysts explained the rally by the weakness of the dollar caused by profit-taking at the end of the month and the quarter as well as repositioning ahead of the US presidential debates. Positive US macroeconomic data did not help the greenback.

S&P/Case-Shiller home price index rose by 3.9% in July, year-on-year, exceeding the median forecast of a 3.6% increase and the previous month’s gain of 3.5%. Month-on-month, the index increased by 0.6%. (Event A on the chart.)

Consumer confidence climbed to 101.8 in September from 86.3 in August, beating the consensus 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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