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EUR/USD Rebounds After Falling on Negative Fundamentals

April 24, 2020 by

EUR/USD fell earlier during the trading session but has managed to rebound by now. The currency pair was dragged down by a dismal German business climate (event A on the chart) and the disagreement between the European Union members on how exactly to implement measures to stimulate the struggling economy. But later the pair was able to recover and is now trading above the opening level. US macroeconomic reports did not have a noticeable impact on EUR/USD.

Durable goods orders sank 14.4% in March, more than analysts had predicted -12.0%. The indicator rose by 1.1% in February. (Event B on the chart.) The report explained:

Due to recent events surrounding COVID-19, many businesses are operating on a limited capacity or have ceased operations completely.

Michigan Sentiment Index dropped to 71.8 in April from 89.1 in March according to the revised estimate. That is compared with the analysts’ median forecast of 67.8 and the preliminary estimate of 71.0. (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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