Optimism Leaves FX Market, EUR/USD Down

EUR/USD declined today as yesterday’s optimism waned surprisingly fast. It’s interesting to see how long positive sentiment persisted on mere speculations earlier, but the actual positive developments of the situation in Europe weren’t able to keep optimism even for few days. The US fundamental data continues to provide conflicting signals. Michigan’s consumer confidence index rose, while the confidence index of Conference Board (released earlier this week) declined.
Personal income and spending of US citizens increased in September. Income rose 0.1%, following the drop by 0.1% in the previous month, while an increase by 0.4% was predicted by analysts. Spending rose 0.6%, matching forecasts, while in the preceding month the increase was 0.2%. (Event A on the chart.)
Revised Michigan Sentiment Index was at 60.9 in October, above the preliminary estimate of 57.5 and September reading of 59.4. (Event B on the chart.)


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