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EUR/USD Fails to Profit from Falling US Consumer Confidence

March 29, 2011 by

EUR/USD rallied today at the beginning of the trading session, but later it slumped back to the opening price. The euro attempted to rise again after the negative reports from the US, but failed. The reports were disappointing after yesterday’s good data. The consumer confidence was expected to drop significantly, but it fell even more heavily than expected. The housing prices weakened optimism for the housing market that was caused by the good report about the pending home sales yesterday. EUR/USD trades currently at 1.4071 after it jumped to the intraday high of 1.4148.

S&P/Case-Shiller home price index declined from 142.21 in December to 141.90 in January. The annual decline was 3.1%, in line with forecasts. (Event A on the chart.)

Consumer Confidence Index dropped to 63.4 in March from 72.0 in February. The slump was even more dramatic that the forecast decline to 64.9. (Event B on the chart.)

EURUSD for 2011-03-29

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