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EUR/USD Slumps on Worsening Consumer Confidence

July 28, 2009 by

EUR/USD is currently posting a biggest daily drop since July 10th as the consumer confidence report for July along with the housing data for May cut the traders’ hopes for the fast economical recovery and boosted the attractiveness of the U.S. dollar in the Forex market. EUR/USD is now trading near 1.4173.

S&P/Case-Shiller Home Price index for 20 U.S. states was at a seasonally adjusted level of 140.05 in May — that’s a 17.05% drop compared to a year before. A decline by 17.90% was expected following an 18.10% drop in April.

Consumer confidence decreased from 49.3 in June to 46.6 in July in United States. It was a rather unexpected drop (forecasts pointed at a decline only to 49.0).

On the good side, yesterday, a report on the June’s new home sales showed a growth from 346k to 384k annualized seasonally adjusted rate. That report surpassed the optimistic forecast of gain to 355k rate.

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

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