The EUR/USD pair pulled back on the first day of the month after mixed economic numbers from the United States and Europe.
In all, the most liquid forex major crashed by over 4% from its highest level in February as the US dollar index made a spectacular comeback.Consumer confidence in the US declined in February as the cost of living crisis in the country gained steam. Data compiled by Conference Board revealed that confidence dropped from 106 in January to 102.9 in February. That was a disappointing figure considering that analysts were expecting it to rise to 108.50.
The US also published mild housing numbers. The house price index dropped by 0.1% in December, which translated to a year-on-year gain of 6.6%. On Monday, data showed that pending home sales jumped sharply in January. Therefore, there is a consensus among market participants that the Fed will deliver at least two more hikes this year.Economists expect the data to show that the PMI rose from 47.4 in January to 48 in February. This means that the manufacturing sector is still struggling.
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