It was mainly democrats dragging the confidence down (while republicans stay around all time positive), Trump promise tax cuts and more deregulation witch is positive, Le Pen is dragging the euro down with her French exit from the eurozone. Eyes on Yellen who could build, or kill the march rate hike hopes.
USD did fall on the data too. about 0.4 on the dollar index, which is significant.
Cryptocurrency posted: USD consumer confidence is down and yet price of EUR/USD drop? Shouldn't the EURO rise in price instead of a drop in price?
The event itself is not so volatile Moreover there are many more events moving markets. Dont forget it is EUR USD so you need events for EUR as well 16:00 USD Michigan Consumer Sentiment (Feb) 95.7 97.9 98.5 19:00 USD U.S. Baker Hughes Oil Rig Count 591 583 20:00 USD Federal Budget Balance (Jan) 51.0B 40.0B -28.0B
I think the EURUSD pair became even more unpredictable after Brexit, Elections, Trump… All these really major political changes led the pair to some big up and downs. You cannot always expect the currency to drop or rise because of certain major news. Just the pair to become more volatile. 😄
Today the EUR / USD pair is trading at half session. Not that the euro is stronger, but the dollar is weaker. This may be related to the squaring of positions ahead of President Trump's first major speech before Congress this Tuesday.
However, investors are still reacting to last week's Federal Reserve (Fed) minutes, which were less flattering than expected on the rate hike in March. US Treasury Secretary Steven Mnuchin also contributed to the weakness of the US dollar last week when he said he hoped Trump's tax reform plan would be approved by Congress before its August recess.
Traders have been discounting Trump's plans for economic growth, however, it seems that all of its plans - including increased tax spending, tax reform and regulatory easing - will likely be postponed until later in the year.