EUR/USD declined today as markets were in the risk-off mode due to the slump of stocks around the world following the monetary policy announcement from the Federal Open Market Committee. Slightly disappointing US gross domestic product did little to halt the slump of the currency pair.
US GDP expanded 3.4% in Q3 2018 according to the third and final estimate. Economists had expected the same 3.5% rate of growth demonstrated in the preliminary estimate. The US economy grew 4.2% in Q2 2018. (Event A on the chart.)
Durable goods orders rose 0.8% in November, two times less than analysts had forecast — 1.6%. The indicator fell 4.3% in October. (Event A on the chart.)
Personal income and spending rose in November. Income rose 0.2%, down from 0.5% in October and missing the analysts’ average estimate of 0.3%. Spending increased 0.4%, exceeding the consensus forecast of 0.3%. Furthermore, the October increase got a positive revision from 0.6% to 0.8%. Core PCE inflation rose 0.1% in November, the same as in October, while experts had anticipated a bigger increase of 0.2%. (Event B on the chart.)
Michigan Sentiment Index improved to 98.3 in December from 97.5 in November. (Event B on the chart.) Experts and the preliminary reading had promised the index to stay unchanged. The report commented to the positive result:
Consumer confidence remained in December at the same record favorable levels as it has throughout the year.
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