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EUR/USD at Highest Level in Three Weeks

May 31, 2011 by

EUR/USD jumped today to the highest level in three weeks on anticipation of a bailout for Greece. All US economic reports were below forecasts today, further boosting the currency pair. EUR/USD trades near 1.4378 now.

S&P/Case-Shiller home price index (seasonally-adjusted) declined by 3.5% in March 2011 from March 2010. Traders expected the index to decline with the February rate of 3.4%. (Event A on the chart.)

Chicago PMI slipped to 56.6 in May from 67.6 in April, compared to the median forecast of 63.8. Economic activity decelerated, butt still posted the twentieth month of growth. New orders and production posted biggest drop in several years, but was positive anyway. (Event B on the chart.)

Consumer confidence went down to 60.8 in May from 66.0 in April. Depressing news, considering Forex market participants expected an increase to 66.3. (Event C on the chart.)

EURUSD for 2011-05-31

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