Poor Data from USA Pushes EUR/USD Further Up

EUR/USD extended its rally today as durable goods orders came out worse than was expected. Even positive manufacturing and consumer confidence reports were unable to bring the currency pair down. The Federal Reserve starts its two-day policy meeting today and will announce its decision tomorrow. The announcement may have tremendous impact on the dollar.
Durable goods orders sank 1.3% in September instead of rising 0.4% as was predicted by most specialists. The huge August drop by 18.2% was revised further down to 18.4%. (Event A on the chart.)
S&P/Case-Shiller home price index rose 5.6% in August from a year ago, in line with expectations but less than in July (6.7%). The index was up 0.2% from the previous month. (Event B on the chart.)
Richmond Fed manufacturing index climbed from 14 in September to 20 in October, while analysts expected a drop to 11. (Event C on the chart.)
US consumer confidence jumped from the revised September level of 89.0 to 94.5 in October — another nice surprise for dollar bulls who were counting on a decrease to 87.4. (Event C on the chart.)



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