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EUR/USD Can’t Stay Above 1.3700

July 31, 2007 (Last updated on November 30, 2009) by Andriy Moraru

After breaking back above the 1.3700 mark EUR/USD fell below this level as the economic releases on inflation and consumer confidence were released today. Struggling below this level, if continued, may precede the new bearish trend in EUR/USD, while rallying and staying above will mean a return to a long-lasting EUR/USD bull trend.
Personal income and spending June numbers came out today close to the predicted values — 0.4% to 0.5% and 0.1% to 0.1% respectively. Core PCE inflation came out at 0.1% level — below the 0.2% predicted. This means that the inflation indicators are not high yet.
Chicago PMI — a major manufacturing index for the North-West region — decreased significantly from 60.2 to 53.4, while 58.5 was expected.
Construction spending numbers continue to warn the market about the crisis in realty sector showing a decrease of -0.3%, while analysts expected 0.2% growth.
Consumer confidence — the main surprise of a day which kept dollar below 1.3700 and stock markets high — came out at the 112.6 level (far above 105.4 expected) — at its highest value since 2001.

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