EUR/USD Bounces After Three-Day Decline

EUR/USD jumped more than 1% today, almost erasing the previous three-day decline. Some attributed the bounce to a couple of negative economic reports from the United States (particularly the weak employment cost index — event B on the chart). Others pointed at data from the eurozone that showed acceleration of core inflation. (Event A on the chart.) Whatever the reason, the dollar had been much stronger earlier during the current session but has weakened across the board as of now.
Chicago PMI climbed from 49.4 in June to 54.7 in July, exceeding the average analysts’ prediction of 50.7. The report said that all components of the index improved, though some of them remained in contraction. (Event C on the chart.)
Michigan Sentiment Index fell from 96.1 in June to 93.1 this month. While the actual figure was not far from the preliminary reading of 93.3, it was substantially below the value of 94.2 that had been forecast by experts. (Event D on the chart.)


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