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EUR/USD Extends Decline, Driven Down by Adverse Fundamentals

October 27, 2017 by

EUR/USD declined today, extending yesterday’s slump. There were several reasons for that. Catalonia announced independence after all, and that was certainly not good for the euro. Meanwhile, economic data released in the United States was amazing, driving the dollar higher. Additionally, hopes that a new Federal Reserve Chairman will be a hawk were also helping the greenback.

US GDP grew by 3.0% in Q3 2017 according to the first, advance, estimate. The actual pace of growth was faster than 2.6% predicted by analysts. The economy grew by 3.1% in Q2 2017. (Event A on the chart.)

Michigan Sentiment Index climbed from 95.1 in September to 100.7 in October according to the revised estimate, reaching the highest level since 2004. It was in line with market expectations and above the preliminary reading of 100.1. (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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