EUR/USD: Greenback Soars to Intraday High Against Euro on UoM Consumer Sentiment Beat

The University of Michigan released its Index of Consumer Sentiment for September, which came in at an impressive 100.8 points, beating market expectations of 96.7 points.

This month’s UoM Consumer Index is the second highest reading since 2004 and shows that U.S. consumers anticipate the current economic growth to continue during the year ahead, with the unemployment rate dropping even further as the US economy creates new jobs.

The Expectations Index also reached one of its best levels in the last 15 years, due to improving prospects for jobs and income and declining inflation expectations.

UoM Consumer Sentiment

Nevertheless, trade tariffs remain a hot topic – not only between countries. Nearly one-third of all consumers in the past three months mentioned that tariffs might have a negative impact on the domestic economy, which is slightly up from one-fifth in the prior four months.

The US dollar spiked sharply higher immediately after the release to reach an intraday high against the euro of 1.1654. Earlier today, the pair reached a two-week high after the single currency received a significant bid on hawkish comments from ECB’s Draghi yesterday. From a technical standpoint, the pair seems well supported above current levels, with the upper bound from the previous September range acting as support, followed by the support of the broken short-term channel.

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