Bad US Economy Knocks Dollar Down

The US dollar fell today as the poor macroeconomic reports confirmed the slowdown of the US economy, making an end of the quantitative easing in the near future highly improbable.
The seasonally adjusted S&P/Case-Shiller Home Price index fell 3.6 percent from a year ago. The Chicago Business Barometer fell to 56.6 in May from 67.6 in April, indicating a slowed growth of economic activity. The The Consumer Confidence index of the Conference Board slipped to 60.8 in May from 66.0 in April.
Analysts predict more bad new this week. The non-farm payrolls, the jobless claims and the employment report of Automatic Data Processing Inc. are expected to show worsening condition of the US labor market. The report today is expected to show a decline of the Institute for Supply Management Purchasing Managers’ Index.
EUR/USD rose to 1.4421 from 1.4395 today as of 4:17 GMT. GBP/USD advanced to 1.6468 from 1.6445 and USD/JPY fell to 81.23 from 81.50.

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