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EUR/USD Rebounds After Earlier Drop

June 30, 2020 (Last updated on July 1, 2020) by

EUR/USD fell intraday but has started to bounce at 12:00 GMT and is now trading close to the opening level. Market analysts speculated that the rebound was a result of the improving market sentiment caused, at least in part, by positive macroeconomic reports released in the United States today. In particular, consumer confidence was much better than expected.

S&P/Case-Shiller home price index rose 4.0% in May, year-on-year. That is compared with a median forecast of 3.8% and the previous month’s increase of 3.9%. Month-on-month, the index rose by 0.7%. (Event A on the chart.)

Chicago PMI rose to 36.6 in June from 32.3 in May but failed to meet the analysts’ projections of 45.0. (Event B on the chart.)

Consumer confidence climbed to 98.1 in June from 85.9 in May. Specialists had predicted a smaller increase to 91.6. (Event B on the chart.)

Yesterday, a report on pending home sales was released, showing a surge of 44.3% in May that followed a slump of 21.8% registered in April. The median forecast was promising a much smaller increase of 18.9%. (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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