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EUR/USD Rallies But Can’t Hold Gains

November 29, 2011 by

EUR/USD was rising today on the speculation that the European leaders will seek a way out of the crisis. The European finance ministers are meeting today to discuss measures for boosting the bailout fund. The currency pair gave away most of its gains on concerns that the talks won’t be followed by some meaningful actions. The confidence of the US citizens noticeably improved this month, but the housing market was in worse shape than was expected.

S&P/Case-Shiller home price index fell to 139.49 in September from 140.29 in August. The annual change was -3.6%, compared to the forecast of -3.6% and the August value of -3.8%. (Event A on the chart.)

Consumer confidence was at 56.0 in November, much better than the October figure of 40.9 (revised up from 39.8) and the forecast of 43.9. (Event B on the chart.)

Yesterday, a report on new home sales was released, showing a figure of 307k in October that was better than the September reading of 303k (revised down from 313k), but worse than market expectations of 313k. (Not shown on the chart.)

EUR/USD for 2011-11-29

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