EUR/USD (a 4-hour chart)
EMU Bus climate indicator IFO in Germany for April showed a value 104.4 against expectations 106.4. Durable Goods Orders in the U.S. in March showed a decline of 5.7% vs. -2.8%, durable goods orders excluding transportation fell 1.4% against expectations 0.5%. This was the main reason for the pressure on the U.S. stock market (S&P 500 edged up 0.01%), which put pressure on the euro (+18 points). Moreover, some large companies reported worse than it was expected (Procter&Gamble, AT&T, Zynga).
The political situation has finally emerged from a two-month impasse in Italy. The re-elected president Napolitano appointed interim Prime Minister Deputy Head of the Democratic Party Enrico Letta and started to form a government.
Immediately after his appointment, Letta held a press conference at which he announced a departure from the fiscal austerity course. But if even a few months ago, such a statement would have a pressure on the euro, now, in the face of a new wave of quantitative easing by leading central banks it can bring a positive effect.