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EUR/USD Declines as Spanish Banks Need Bailout

May 29, 2012 by

EUR/USD fell today as the European Central Bank said it does not consider a bailout for Spanish bank, which have problems accessing markets. Losses were limited as polls showed that Greek pro-bailout party are gaining votes ahead the June elections in Greece. In the United States, the housing market is slowly improving, but consumer sentiment unexpectedly dipped.

S&P/Case-Shiller home price index fell 2.6% in March, year-on-year, matching analysts’ forecast of a -2.7% change. The change was -3.6% in February. Month-on-month, the index rose 136.78 in February to 136.9 in March. (Event A on the chart.)

Consumer confidence fell to 64.9 in May from 68.7 in April (revised from 69.2). The report frustrated forecasters who promised an increase to 69.8. (Event B on the chart.)

EUR/USD for 2012-05-29

If you have any comments on the recent EUR/USD action, please reply using the form below.

One Response to “EUR/USD Declines as Spanish Banks Need Bailout”

  1. Manuel

    Market sentiment is very negative now, though the EURUSD remains above the lowest levels reached in march/09. I think there might be a turnaround soon.


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