EUR/USD Maintains Rally Ahead of FOMC Week

EUR/USD continued to march upward on Friday as traders speculated whether the Federal Open Market Committee hikes interest rates next. The worse-than-expected US consumer confidence index supported the view that markets will not see a rate hike in September. Such outlook is detrimental to the dollar, allowing the euro to gain on the US currency.
Seasonally adjusted PPI showed no change in August after falling 0.2% in July. Forecasters had predicted a 0.1% drop. (Event A on the chart.)
Preliminary Michigan Sentiment Index demonstrated a reading of 85.7 in September that was below the August’s figure of 91.9 and the median analysts’ prediction of 91.4. (Event B on the chart.)
Treasury budget deficit shrank from $149.2 billion in July to $64.4 billion in August. This is compared to the economists’ estimate of $82.3 billion. (Event C on the chart.)


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