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Unexpectedly Bad Fundamentals in US Supported EUR/USD

October 25, 2011 by

EUR/USD was trading flat for the most part of today’s trading session, but later started to decline. At present, the currency pair rebounded and is trading near its opening level as the fundamental data from the US was unexpectedly bad. Most reports showed worsening condition of the US economy and all of them were worse than forecasts.

S&P/Case-Shiller home price index fell to 140.56 in August from 140.63 in July. The index was 3.8 percent down from August 2010. (Event A on the chart.)

Richmond Fed manufacturing index stayed at -6 in October, the same value as in September. That’s a disappointment for traders as analysts predicted an increase to 2. Value below 0 indicates worsening conditions for manufacturers. (Event B on the chart.)

Consumer confidence index dropped to 39.8 in October from 46.4 in September (revised from 45.4). That was yet another disappointment as forecast value was 46.1. (Event B on the chart.)\

EUR/USD for 2011-10-25

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

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