Also, the EUR/USD currency pair is booming! During the American session on Tuesday, it has remained well above that 1.0800 threshold. This bullish development is the result of a convergence of negative economic data out of the U.S. We’ll get the Consumer Sentiment index for March and New Home Sales figures. These indicators are important in providing the EUR/USD with the support to stay afloat.
Contributing to the pair’s rise has been an improving risk mood in the market. The subdued Consumer Confidence data from the US has made it challenging for the USD to find demand and support against the euro. Consequently, the EUR/USD’s net short has been propped up, keeping its optimistic undertow going strong all session.
Market participants are watching closely to see how the situation unfolds as the week goes on. They’ve been focused on the Core PCE, which is the Federal Reserve’s inflation measure of choice. This highly-anticipated data release will give further indication as to the short-term inflation outlook. It might determine the direction of the EUR/USD currency pair.
The trading dynamics for the EUR/USD highlight the multifaceted relationship between economic indicators and prevailing market sentiment. Together, they have found a way to thrive amid a tough economic climate. They are highly vulnerable to any changes in investor confidence and policy signals. As such, traders are encouraged to stay alert as they consider ETF and equity moving events.