Dollar Slightly Down But Spike Hints Bearish Sentiment

The U.S. dollar dropped against the euro today after some rather good fundamental reports on employment and total economic output. But the upward spike on the EUR/USD chart, which is significantly higher than the daily gain hints that the bearish sentiment among the traders is still quite strong near 1.4670 level. Currently, EUR/USD is trading near 1.4517.

ADP employment change report for September 2009 showed a decline by 254k jobs — that’s better than August’s 298k drop, but is worse than only 200k drop forecasted by the analysts.

U.S. GDP change for the 2nd quarter of 2009 received it final revision report today, which showed a decrease by only 0.7%, compared to 1% drop in the previous report and 1.2% decline forecast.

Chicago PMI fell from 50.0 to 46.1 in September, reflecting the pessimistic expectations of the manufacturing industry managers in the region. The index was expected to rise to 52.0.

U.S. crude oil inventories increased by 2.8 million barrels last week, while the total motor gasoline inventories decreased by 1.6 million barrels during the same period of time.

Tags: ADP employment, Chicago PMI, crude oil inventories, GDP
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EUR/USD Declines Despite Increased House Prices
September 29th, 2009

EUR/USD continued to fall today in the Forex market despite the optimistic stock market conditions and good housing report. It’s either that the euro is losing its attractiveness to the global investors or the greenback is beginning to really benefit from the better prospects for the U.S. economy. EUR/USD is currently trading near 1.4537.

S&P/Case-Shiller Home Price index (seasonally-adjusted) grew for a second month in a row in July 2009. The index went up from 141.42 to 143.05 from the
previous month. It decreased by 13.41% year-over-year, following 15.40% decrease a month earlier. The forecasted year-over-year drop was 14.25%.

Consumer confidence went down from 54.5 to 53.1 in September. It was an unexpected drop as the forecasts hinted a growth to 57.0.