A boost in US consumer confidence fails to push indices higher

EURUSD jumps back into consolidation: Chart

The US Dollar was bearish against most of its major pairs on Tuesday with the exception of the CAD and JPY. On the US economic data front, Wholesale Inventories unexpectedly rose 0.5% on month in the August preliminary reading (-0.1% expected), compared to a revised -0.1% in the July final reading. Finally, the Conference Board's Consumer Confidence Index spiked to 101.8 on month in September (90.0 expected), from a revised 86.3 in August. 

On Wednesday, the Mortgage Bankers Association's Mortgage Applications data for the week ending September 25th is expected. Automatic Data Processing's Employment Change for September is expected to increase to 648K on month, from 428K in August. U.S. GDP for the second quarter third reading is expected to remain at -31.7% on quarter, in line with the second quarter second reading. Market News International's Chicago Purchasing Managers' Index for September is expected to rise to 52.0 on month, from 51.2 in August. Finally, Pending Home Sales for August are expected to jump 3.2% on month, compared to +5.9% in July.                       

The Euro was bullish against most of its major pairs with the exception of the AUD. In Europe, France's INSEE has released September Consumer Confidence Index at 95 (vs 93 expected). The Bank of England has released the number of mortgage approvals for August at 84,700 (vs 71,300 expected). The European Commission has reported the Eurozone's September Economic Confidence Index rose from 87.5 to 91.1 (vs 89.0 expected). German CPI fell 0.2% in September in first estimation (-0.1% expected) after a 0.1% decline in August.

The Australian dollar was bullish against all of its major pairs.

Looking at the most active major pairs, the EUR/USD jumped 74 pips to 1.174. The pair as entered back into its prior consolidation zone. A bearish cross remains in-play after the 20-day moving average crossed below the 50-day moving average however bearish momentum as so far failed to materialize. A break above 1.2015 would signal a resumption of the prior uptrend. A break below 1.1605 support could cause an acceleration lower towards 1.15 key support that was acting as resistance back in March. 



Source: GAIN Capital, TradingView

Happy Trading

More from Forex

Disclaimer: The information on this web site is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement. The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency or CFD contract. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. Any references to historical price movements or levels is informational based on our analysis and we do not represent or warranty that any such movements or levels are likely to reoccur in the future. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.

Futures, Options on Futures, Foreign Exchange and other leveraged products involves significant risk of loss and is not suitable for all investors. Losses can exceed your deposits. Increasing leverage increases risk. Spot Gold and Silver contracts are not subject to regulation under the U.S. Commodity Exchange Act. Contracts for Difference (CFDs) are not available for US residents. Before deciding to trade forex and commodity futures, you should carefully consider your financial objectives, level of experience and risk appetite. Any opinions, news, research, analyses, prices or other information contained herein is intended as general information about the subject matter covered and is provided with the understanding that we do not provide any investment, legal, or tax advice. You should consult with appropriate counsel or other advisors on all investment, legal, or tax matters. References to Forex.com or GAIN Capital refer to GAIN Capital Holdings Inc. and its subsidiaries. Please read Characteristics and Risks of Standardized Options.