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EUR/USD Goes Down on Signs of Improving Economy in U.S.

July 27, 2010 by

EUR/USD currency pair went down today after macroeconomic indicators signaled about improving economic conditions in the U.S. Yesterday’s report about an unexpected surge of new home sales, together with today’s reports, promises a bright future for the U.S. economy, or at least some recovery. Consumers, obviously, hadn’t time to react on good reports, therefore consumer confidence extended its decline this month. EUR/USD trades now near 1.2977.

S&P/Case-Shiller Home Price index (seasonally-adjusted) advanced for a second month in May to 147.33 from 146.64 in April. It increased by 4.6% on year-over-year basis, compared to the forecast value of 3.9%.

Consumer confidence retreated further in July to 50.4 after it had declined sharply in June to 54.3. The expected value was 51.3.

Richmond Fed manufacturing index declined to 16 in July from June’s reading of 23. That’s somewhat better than analysts predicted (decline to 14).

Yesterday, a report on new home sales was released. It showed an increase to 330k in June, compared to 267k in May.

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

2 Responses to “EUR/USD Goes Down on Signs of Improving Economy in U.S.”

  1. John

    I’m a bit amazed at how the EurUsd has been bouncing back up to previous levels…I thought for sure we were going to hit parity once again…Although I haven’t traded this pair in two months, I’m pleasantly watching my Euro index funds creep back up!!

    Reply

  2. Sam

    I am sure we actually are going to hit parity for Eur/Usd, but it may not happen for six months to a year. I’ll be watching for it. I think 1.31 will be major resistance for a while.. but, we could see moves higher before the big move down..

    Reply

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