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EUR/USD Retreats from Eight-Month High

October 1, 2013 by

Quite a few factors influence EUR/USD right now, resulting in a confusing performance of the currency pair. In the United States, a partial shutdown of federal services has started today as US politicians were not able to pass a budget bill. Initially, the euro soared to the highest since February on the news. Yet the situation in Europe is not much better as Italy faces a government collapse. Additionally, German unemployment unexpectedly surged (event A on the chart) even as the eurozone unemployment rate ticked down (event B on the chart). As a result, the currency pair has retreated as of now.

ISM manufacturing PMI rose from 55.7% to 56.2% in September. A pleasant surprise to market participants, who have expected a drop to 55.3%. (Event C on the chart.)

Yesterday, a report on Chicago PMI was released, showing an increase from 53.0 in August to 55.7 in September, which exceeded the forecast rise to 54.5. (Not shown on the chart.)

EUR/USD for 2013-10-01

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

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