Forex Blog

First-hand Forex trading experience and information about foreign exchange market that will be useful to traders


EUR/USD Reverses Earlier Losses, Heads to End Friday with Gains

January 29, 2021 by

EUR/USD started Friday with losses but reversed its movement at about the beginning of the European trading session and has been trading above the opening level at the time of writing, demonstrating volatile moves back and forth. Today’s macroeconomic reports in the United States almost universally beat expectations but that did not prevent the currency pair from rallying.

Personal income rose by 0.6% in December after dropping by 1.3% in November (revised negatively from a 1.1% drop). Markets were expecting a much smaller increase of 0.1%. Personal spending decreased by 0.2%, while analysts had predicted a drop of 0.4%. The previous month’s decline got a negative revision from 0.4% to 0.7%. Core PCE inflation was at 0.3% after showing a flat reading in November. The median forecast was promising a smaller figure of 0.1%. (Event A on the chart.)

Chicago PMI jumped from 59.5 in December to 63.8 in January. That was a total surprise to experts who had predicted a decline to 58.4. (Event B on the chart.)

Pending home sales fell by 0.3% in December. That is compared with the median forecast of a 0.5% decrease and the previous month’s 2.6% slump. (Event C on the chart.)

Michigan Sentiment Index dropped to 79.0 in January from 80.7 in December according to the revised estimate. Market participants were expecting the same 79.2 figure as in the preliminary report. (Event C on the chart.)

If you have any comments on the recent EUR/USD action, please reply using the form below.

Leave a Reply

required (will not be published)