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EUR/USD Fall, but U.S. Consumer Confidence Threatens Dollar

June 29, 2010 by

EUR/USD currency pair dropped for a second day after yesterday’s report about growth of personal spending and income in the U.S. The home price index also brought good news, doubly welcome news from very bearish market. Astounding slump in consumer confidence, though, threatens to erase any positive effect, which the good news brought. EUR/USD trades currently at 1.2152.

S&P/Case-Shiller home price index rose in month-to-month comparison in April from 145.81 to 146.45. Compared to April 2009 it rose by 3.86%.

Consumer confidence posted an tremendous and surprising slump to 52.9. This reading is nowhere near the previous value of 62.7 and the expected 62.8. The previous troubling signs of economy’s weakness at last showed their impact on sentiment of consumers.

Yesterday, a report on personal income and personal spending was released. Personal income the U.S. increased 0.4% in May after increasing at the revised rate of 0.5% in April. Personal spending rose by 0.2% in May, compared to the 0.0% growth in the month earlier. Median forecast for income was 0.5% and for spending 0.1%

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