G20 Meeting Started, Bolstering EUR/USD

EUR/USD jumped today as the leaders of the Group of Twenty started their meeting in Paris today. The G20 chiefs will discuss the European sovereign-debt crisis and the actions needed to be taken in order to resolve the situation that threatens the global economy. The news from the US were good for the most part, except for the preliminary report about the sentiment of Americans that showed a deteriorating confidence.
The advance reading for US retail sales showed a monthly increase of 1.1% in September, which was about two time above the forecast value — 0.5%. The August figure was revised from zero (0.0% change) to 0.3% increase. (Event A on the chart.)
Import and exports prices rose in September. Import prices increased 0.3% last month after falling 0.4% in August (revised from 0.4%). Market participants expected a drop by 0.3%. Export prices increased 0.4% in September, following the advance by 0.5% in the previous month. (Event A on the chart.)
Preliminary estimate of Michigan Sentiment Index showed a drop to 57.5 in October from 59.4 in September (positively revised from 57.8). Traders hoped for an increase to 60.2. (Event B on the chart.)
Business inventories in August showed the same rate of growth as in July — 0.5%. Median forecast was 0.4%. (Event B on the chart.)
Deficit of US Treasury budged shrank to $64.4 billion in September from $134.1 billion in August. The actual reading was near the forecast value of $65.0 billion. (Event C on the chart.)


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

Leave a Reply

Your email address will not be published. Required fields are marked *