Volatile Moves of EUR/USD Caused by Bad News for Euro & Dollar

EUR/USD currency pair experiences volatility today as both the dollar and the euro encountered some hardship. The euro was weakened by speculation that Germany may ban naked short selling of some securities permanently. In the same time, the dollar was harmed by reports, which showed slowdown of the U.S. economic growth. EUR/USD trades currently at 1.2364, near its opening level.

U.S. personal income increased 0.4% in April, the same pace as in March. Increase by 0.5% was expected. Personal spending less than 0.1% in April, compared with the 0.6% increase in March. Traders expected growth by 0.3%.

Chicago PMI index declined to 59.7 in May from 63.8 the last month. Forecast promised drop to only 62.1

University of Michigan Index of Consumer Sentiment rose to 73.6 in May from 72.2 in April. This reading is slightly higher than experts’ forecast of 73.4.