EUR/USD advanced today as the tide of bad news from Europe seems to calm down, while the US house market performed simply terrible last month. The positive sentiment of the US consumers currently pushes the currency pair to the downside, though. EUR/USD trades near 1.4235 now after it jumped as high as 1.4298 as of 12:30 GMT.
The reports about personal income and spending in the US was released today. It showed that personal income increased 0.4% in April, the same rate of growth as in March, being in line with forecasts. Personal spending also rose 0.4% in April, while experts predicted that the rate of increase would be the same as in March â 0.5%. (Event A on the chart.)
Michigan Sentiment Index rose to 74.3 in May from 69.8 in April. Forex traders expected the index to be near the preliminary estimate of 72.4. (Event B on the chart.)
Pending home sales edged down sharply by 11.6% in April from March, following the increase by 3.5% (revised down from 5.1%) in March from February. The market expectations were too optimistic to await drop by only 0.9%. (Event B on the chart.)
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