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29 Mar 2013
Forex: EUR/USD rises towards highs after US consumer sentiment
FXstreet.com (Barcelona) - The EUR/USD printed its daily high at 1.2827 by the end of the European morning, and as investors priced in US consumption figures and ahead of US consumer sentiment data, the pair eased to 1.2813. Once Reuters/Michigan Consumer Sentiment Index was published, the market returned to those highs.
Against analysts’ consensus of a drop from 77.6 to 72.5 in March, Reuters/Michigan Consumer Sentiment Index rose to 78.6 in February. The Core Personal Consumption Expenditure - Prices Index remained unchanged at 1.3% in February (YoY), with the monthly figure rising 0.1%, below consensus of 0.2%. Personal consumption expenditures rose 0.4%, with the annualized figure rising from 1.2% to 1.3%. Personal income beat consensus of 0.8% by rising 1.1% (from -3.6% in the previous month). Personal spending disappointed at 0.3%, while investors were pointing at 0.6%.
“The downtrend after 1.3050 high is already over with the double test of 1.2750 support zone and currently a consolidation pattern is underway with a potential for a test of 1.2900 resistance area”, wrote Deltastock.com analyst Stoyan Mihaylov, pointing to a bearish overall outlook on the senior frames, focused on 1.2650 major support.
Against analysts’ consensus of a drop from 77.6 to 72.5 in March, Reuters/Michigan Consumer Sentiment Index rose to 78.6 in February. The Core Personal Consumption Expenditure - Prices Index remained unchanged at 1.3% in February (YoY), with the monthly figure rising 0.1%, below consensus of 0.2%. Personal consumption expenditures rose 0.4%, with the annualized figure rising from 1.2% to 1.3%. Personal income beat consensus of 0.8% by rising 1.1% (from -3.6% in the previous month). Personal spending disappointed at 0.3%, while investors were pointing at 0.6%.
“The downtrend after 1.3050 high is already over with the double test of 1.2750 support zone and currently a consolidation pattern is underway with a potential for a test of 1.2900 resistance area”, wrote Deltastock.com analyst Stoyan Mihaylov, pointing to a bearish overall outlook on the senior frames, focused on 1.2650 major support.