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Session recap: EUR falls through key 1.3150 level

FXStreet (Guatemala) - The Euro finally gave up the 1.3150 barrier after the London fix and month end flows were wrapped up. US stocks and the dollar got a lift from a decent and positive end of the month set of data.

Consumer confidence improved in the month of August with the public likely encouraged by improvements in the labour market. Reuters/Michigan Consumer sentiment index beat expectations and improved on last print as well, printing 82.5 vs 80.1 consensus and 81.8 previous for July. Core PCE came in line with expectations at 1.5% for July month on month.

EUR/USD had been offered from 1.3180 and bears jumped on top which pushed the pair through the 1.3150 barrier at the end of the week and leaves us wondering when this train is going to stop. There are talks of there being further barrier option interest at 1.3125 and then 1.31 the figure.

GBP/USD was volatile at month end as the pair lost it’s footing after the European spike onto the 1.66 handle, and dropped all the way back to test territory at 1.6565. This was short lived as bulls took over and made sure of a close back on the 1.66 handle.

USD/CAD followed through on the bid on the initial move away from the end of the week lows. Canada printed a very healthy GDP result but the greenback was relentless into the closing hours with end of month flows executed.

Key events:

Chicago PMI improved to 64.3 from 52.6

Canadian GDP Q2 3.1% vs median forecast of 2.7%

US core PCE as expected at 1.5% y/y

Reuters/ Michigan consumer sentiment beats expectations at 82.5

Wall Street closed: S&P 500, best August performance since 2000

In the US, stocks picked up on best monthly gains since the start f the year as investor were encouraged by improving developments in the US economy.
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