With the consumer confidence surveyed in this September fall beneath the level of 1985 (from 105.6 to 99.8) the U.S. dollar can’t hold its position and loses almost 100 pips on EUR/USD rallying it to a new historical maximum at 1.4154.
While mortgage problems in U.S.A. continue to crush real estate sector throwing existing home sales to 5.5 millions in August (in July this number was 250,000 higher), consumer confidence — one of the main indicators of economy potential fall below any expectations by almost 6 points.
Considering the latest FOMC decision on interest rates it is not really hard to predict their reactions if today’s news releases will set a tendency for the next month, leaving Fed with bad macroeconomical data. Then another 0.50% can be cut by the end of 2007 and EUR/USD may pass 1.4500 level without a stop.
