The EUR/USD has recovered more than 25 pips after the disappointing result of the consumer confidence of the University of Michigan. The pair, which had hit new 2021 lows at 1.1432 just before the release, has risen to daily highs at 1.1462 after the data. At the time of writing it is trading above 1.1452, gaining 0.05% on the day.
Michigan consumer sentiment falls to 66.8 in November, its lowest level since 2011
The University of Michigan consumer sentiment index has fallen to 66.8 points in November’s preliminary reading, falling below the 72.4 expected by the market. In October, the indicator obtained 71.7 points. This is the worst reading recorded in ten years, specifically since November 2011.
The Present Conditions Index fell to 73.2 from 77.7 and the Consumer Expectations Index fell to 62.8 from 70.5.
The dollar gives ground since highs of 2021
The dollar has fallen about 25 pips as measured by its DXY index. After reaching highs of the year early Friday at 95.26, the greenback has fallen to 94.99, the low of the day, and is now moving around 95.05 / 10.
The US stock markets recorded gains, with the Dow Jones up 0.06%, the S & P 500 gaining 0.13% and the Nasdaq advancing 0.22%. In Europe, the German DAX has erased its losses and will close a positive 0.07%, while the Eurostoxx 50 rises 0.17%.
The pair’s traders have a few hours before the close of the American session to digest the result of the data. Earlier, John C. Williams, president of the New York Fed, will make a statement.
In case of further declines, the pair will find initial support at 1.1422 (June 2020 high). Below the psychological zone of 1.1400 expect 1.1370, the floor of July 17, 2020.
To the upside, the initial barrier is at 1.1500. To regain the upward momentum, it would be necessary to regain the 1.1600 area and target the resistances located between 1.1610/15, where the highs of early November are.