EUR/USD (a 4-hour chart)
The U.S. dollar fell after a series of economic reports, indicating a further weakening of the U.S. economy. Such data have lowered expectations about what the U.S. Federal Reserve may soon begin to phase out its bond-buying program. According to published in Tuesday's data, the index of purchasing managers in April Chicago PMI fell to its lowest level since September 2009.
According to another report U.S. consumer confidence rose in April. However, consumer spending in the 2nd quarter is likely to slow down. As last week's report that the U.S. GDP in Q1 grew by only 2.5%. The data was worse than expected. Now traders are not so sure that the Fed will soon begin to phase out its bond-buying program. This program was designed to support the economy and to keep interest rates low. The implementation of these programs puts downward pressure on the dollar.
The latest data on eurozone unemployment show that the level of unemployment in the region rose to a new record high of 12.1% in March (from 12% last month).
Rating agency Standard and Poor's predicts that property prices could fall another 13% by the end of the year and it looks bleak outlook not only for Spain but also for other countries in Europe.