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EUR/USD Rises amid Risk-On Market Sentiment

May 26, 2020 by

EUR/USD was rising today as hopes for a COVID-19 vaccine and the reopening of economies across the world put markets into a risk-on mode. While the currency pair has pulled back a bit by now, it is still trading far above the opening level. As for US macroeconomic data, it was decent, with the housing market performing well and the consumer confidence improving, though missing expectations slightly.

S&P/Case-Shiller home price index rose by 3.9% in March, year-on-year. That is compared with the median forecast of a 3.4% increase and the 3.5% gain registered in the prior month. Month-on-month, the index rose 1.1%. (Event A on the chart.)

Consumer confidence rose to 86.6 in May from 85.7 in April (negatively revised from 86.9) but missed the consensus forecast of 87.1. (Event B on the chart.)

New home sales were at a seasonally adjusted annual rate of 623k in April, up from the revised March rate of 619k (627k before the revision). The actual value was far above the analysts’ median estimate of 492k. (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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