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EUR/USD Falls Despite Worsening US Consumer Confidence

December 28, 2010 by

EUR/USD fell today on the speculation that the European Central Bank would perform quantitative easing to support the struggling European economy. Manufacturing data provided an additional reason for the dollar to rally, yet home prices and consumer confidence reports were less encouraging. EUR/USD trades now at 1.3108.

S&P/Case-Shiller Home Price index (seasonally-adjusted) declined in October to 143.52 from 144.95 in September. It fell by 0.8% on year-over-year basis, compared to the forecast value of 0.1%.

Richmond Federal Reserve manufacturing index rose to 25 in December from November’s reading of 9. A much smaller growth to 11 was expected by market participants.

Consumer confidence decreased slightly to 52.5 in December down from 54.3 in November. US consumers remained cautious in their outlook for economic growth, while experts expected improvement of the confidence index to 56.2.

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

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