EUR/USD Declines as Spanish Banks Need Bailout

EUR/USD fell today as the European Central Bank said it does not consider a bailout for Spanish bank, which have problems accessing markets. Losses were limited as polls showed that Greek pro-bailout party are gaining votes ahead the June elections in Greece. In the United States, the housing market is slowly improving, but consumer sentiment unexpectedly dipped.
S&P/Case-Shiller home price index fell 2.6% in March, year-on-year, matching analysts’ forecast of a -2.7% change. The change was -3.6% in February. Month-on-month, the index rose 136.78 in February to 136.9 in March. (Event A on the chart.)
Consumer confidence fell to 64.9 in May from 68.7 in April (revised from 69.2). The report frustrated forecasters who promised an increase to 69.8. (Event B on the chart.)

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