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EUR/USD Retreats After Earlier Rally Despite Awful US Data

April 28, 2020 by

EUR/USD was rising in the first half of the trading session but has reversed movement at 12:00 GMT and was moving lower since then. Any attempt to bounce was countered by an even bigger decline. The currency pair continued to fall even after the release of very bad US macroeconomic reports. Currently, the pair trades near the opening level.

S&P/Case-Shiller home price index rose by 3.5% in February, year-on-year, whereas analysts were expecting the same 3.1% rate of growth as in the previous month. The index ticked up 0.5%, month-on-month. (Event A on the chart.)

Richmond Fed manufacturing index collapsed from 2 in March to -53 in April, demonstrating the biggest one-month drop in history and hitting the record low. It was worse than even the analysts’ pessimistic expectations of a drop to -41. (Event B on the chart.)

Consumer confidence sank to 86.9 in April from 118.8 in April (revised down from 120.0), demonstrating the largest drop on record. Experts had promised a somewhat better reading of 88.3. (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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