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EUR/USD Remains Weak amid Coronavirus-Related Risk Aversion

June 26, 2020 by

EUR/USD continued to fall today. While it attempted to rebound intraday, the currency pair has failed and now is trading firmly below the opening level. Analysts explained the decline by mild risk aversion on the Forex market caused by fears of the potential second wave of the coronavirus pandemic.

Personal income fell by 4.2% in May. While it was a far worse reading than the increase of 10.8% registered in the previous month (revised up from 10.5%), the actual figure was still better than the median forecast of a 6.0% drop. Personal spending rose by 8.2%, missing the analysts’ consensus projection of an 8.9% increase. Nevertheless, it was a better reading than the drop of 12.6% registered in April (revised positively from 13.6%). Core PCE inflation was at 0.1%. That is compared with 0.0% predicted by analysts and -0.4% registered in the prior month. (Event A on the chart.)

Michigan Sentiment Index rose to 78.1 in June from 72.3 in May according to the revised estimate. It was below the consensus forecast of 79.1 and the preliminary estimate of 78.9. (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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