The euro climbed against the US dollar as the report showed that confidence of the US consumers dropped this month and on hopes that Europe will find solution to its problems.
The Reuters/University of Michigan Consumer Sentiment dropped from 74.3 to 71.8 this month, according to the preliminary estimate. The expected value was 74.2. The leading indicators can provide some support for the dollar as they posted the increase by 0.8 percent in May, while the predicted growth was 0.3 percent.
The euro rose, but fundamentals look unfriendly to the currency. Greece may receive new government, yet this doesn’t necessary mean that the nation will agree to the terms of bailout. On the bright side, the International Monetary Fund announced that it’s going to support Greece. It looks like Germany’s and France’s leaders reached some form of agreement about steps to deal with the debt issues.
EUR/USD closed today at 1.4310 after opening at 1.4202 and falling to 1.4126. EUR/JPY closed almost unchanged at 114.54 after it retreated to 113.72. EUR/GBP advanced from 0.8790 to 0.8838.
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