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EUR/USD Drops After Huge Leap of US Consumer Confidence

March 28, 2017 by

EUR/USD dropped today following the release of a bunch of positive macroeconomic reports from the United States. Of special note was the consumer confidence that demonstrated a huge leap this month. The drop was not big, though, and at present does not look anything more than a correction in a rally that the currency pair has started at the beginning of March.

S&P/Case-Shiller home price index rose 5.7% in January, year-over-year, matching forecasts exactly. The index was up 5.5% in the previous month. Month-on-month, the indicator ticked up 0.2%. (Event A on the chart.)

Richmond Fed manufacturing index rose from 17 in February to 22 in March — the strongest reading for that index since April 2010. Analysts had expected the index to stay almost unchanged at 16. (Event B on the chart.)

Consumer confidence continued to improve in March following the increase in February, rising from 116.1 (revised, 114.8 before the revision) to 125.6. Most forecasts were pessimistic, promising a drop to about 113.9. (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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