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EUR/USD Up as Markets Recover After Brexit

June 28, 2016 by

EUR/USD rose from the second session today following the big slump on Friday that followed the surprise decision of Great Britain to leave the European Union. Markets are recovering from the shock even though traders remain cautious. As for economic data from the United States, it was mixed with the unexpected deterioration of manufacturing but the huge improvement of the consumer sentiment and growth of the economy.

US GDP rose 1.1% in Q1 2016 according to the third and final estimate. It was a bit higher than a 1.0% increase predicted by analysts. The revised estimate was also above the preliminary estimate of 0.8% (which itself was a positive revision from the advance estimate). (Event A on the chart.)

S&P/Case-Shiller home price index rose 5.4% in March, year-over-year. Experts had promised the same 5.5% rate of growth as in February. Month-over-month, the index was up 0.9%. (Event A on the chart.)

Richmond Fed manufacturing index fell from -1 to -7 in June. Analysts totally missed with their forecasts of an increase to 2. (Event B on the chart.)

Consumer confidence jumped to 98.0 in June from 92.4 in May. The actual value was far above the forecast 93.2. (Event C on the chart.)

EUR/USD as of 2016-06-28

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