EUR/USD failure at 1.1600 opens the door for 1.1500

The EUR/USD is trimming losses, trading at 1.1596, barely up 0.13% during the day at the time of writing. As the New York session progresses, the market sentiment has improved. The four US major stock indices are recording gains between 0.68% and 1.72%. On the other hand, renewed optimism late during the American session struck the US T-bond yields, with the 10-year benchmark note coupon losing more than a half percent, sitting at 1.472%, for the first time since Monday.

The US Dollar Index, which tracks the US dollar performance against six peers, is recording losses for the second consecutive day, is down 0.23%, clinging to 94.04, exerting upward pressure on the EUR/USD pair.

Across the pond, the Institute for Supply Management released the PMI for September. The reading rose to 61.1, better than the 59.6 expected by analysts. According to the report, the reading indicates “expansion in the overall economy for the 16th month in a row after the contraction in April 2020.”

In the meantime, the University of Michigan Consumer Confidence edged slightly higher to 72.8 more than 71 foreseen. The report shows that American people are somewhat more optimistic about current economic conditions.

The favorite Fed’s reading for inflation, the Personal Consumption Expenditure Index for August, increased by 3.6% on an annual basis, a tenth higher of the expectations.