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The markets liked the Chicago PMI numbers that although still in heavy contraction were better than expected, and accepted that the House Price Index in the U.S., although dropping, was a lower drop than expected. That allowed the majors to reverse overnight dollar selling, and send them back into the opening price areas. The S&P and oil moved sideways, gold was sold in the move to the Usd, as the markets awaited the 10:00 EDT Consumer Confidence numbers, and the subsequent reaction to the European close at 11:00 EDT.
At 10:00 EDT a large percentage drop, from 54.8 to 49.3, in U.S. consumer confidence numbers sent global equity markets lower, sent oil and gold plummeting, Treasury notes higher, and pushed the Usd up heavily. The move to the safety of U.S. bonds, and by default the Usd, sent the major pairs towards the lows of the week, and offered one of two things; the chance to buy support, or the opportunity to see if this is the 4 hour chart range top that was just hit now sends currencies lower to test the early June lows.
Time will tell, patience is required as this settles down and the market looks for the second leg that is likely to come as European markets move towards their close at 11:00 EDT.