EUR/USD Drops with Slower Pace as Fears Ease

EUR/USD continued to fall today, albeit with slower pace. Fears of war in Syria eased after both the Great Britain and France rejected to participate in an attack on the Middle Eastern country until the UN survey confirms that Syria indeed used chemical weapons. Today’s US data was moderately positive, but not too shiny.
Both personal income and spending rose 0.1% in July, missing the forecast of 0.3%. In June, expenditures increased 0.6%, while income was up 0.3%. (Event A on the chart.)
Chicago PMI increased from 52.3 in July to 53.0 in August, in line with the forecast of 53.2. (Event B on the chart.)
Michigan Sentiment Index dropped from 85.1 in July to 82.1 in August, according to the revised estimate. Still, it was far above the preliminary reading of 80.0 and the analysts’ forecast of 81.2. (Event C on the chart.) The report said:

The August survey indicates that the recent confidence gains have stalled as consumers await decisions on the federal budget and monetary policy.

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