EUR/USD Falls as US Economy Stabilizes

EUR/USD fell today as macroeconomic data showed that the US economy is stabilizing, reducing need for stimulative measures. Housing and consumer confidence data wasn’t very good, but, still, decline of the housing index slowed and consumer sentiment index remained near the highest level in a year. Manufacturing data, on the other hand, was much worse than anticipated.
S&P/Case-Shiller home price index was almost unchanged at 136.6 in January from the December figure of 136.65. On year-over-year basis, the index slipped 3.8%, exactly as forecasters predicted. The drop was 4.1% in the preceding month. (Event A on the chart.)
Richmond Fed manufacturing index sank from 20 in February to 7 in March. That’s a much bigger drop than the expected fall to 18. (Event B on the chart.)
Consumer confidence fell from 71.6 in February (revised up from 70.8) to 70.2 in March, in line with analysts’ forecast of 70.3. (Event B on the chart.)


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