30, May 2013

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

Euro dollar continues to lose its ground. On Tuesday it was reported that the consumer confidence index jumped to 76.2, this is the highest value since January 2008. It is possible that these figures will be reflected in the retailers’ reports.

Rumors percent rate lowering does not add confidence to the euro.

Confidence of consumers and the S & P/Case- Shiller housing prices are better than the forecast was.

According to the UBS, the U.S. economy is strengthening the dollar. If strong U.S. economic data continue to release, it is expected that within the next three months EUR / USD will continue to fall to 1.26.

In addition, Jane Foley from Rabobank noted that according to a recent report CFTC, EUR short orders continue to grow and they are able to reach the level that has not happened since last year November.

The France Consumer confidence index reached its multi-year low, but the euro has not responded to it. The index of U.S. consumer confidence has reached five-year high level that news can push the euro to a rapid falling.

If the USA economy continues strengthening that will affect adversely the euro.