The Euro added a bit in relation to the USD
While the traders expected the US existing home sales data to be issued the Euro grew a bit in relation to the United States dollar. This growth of the Euro was caused by the opinion that the data from the housing sector will not contribute to any improvement in the US economy. According to Steve Pearson at HBOS the certain decrease of the mortgage applications number and pending home sales reflects the current situation.
There was already a decline of the Euro on Friday caused by the new European PMI data that reflected the decrease of the activity at service and manufacturing sectors. This information led to the bad forecasts for the Europe. But soon the situation improved a bit after the opinion appeared that the European Central Bank is not likely to cut interest rates. The PMI index continued to decrease. Meanwhile the European Central Bank is not going to execute any rate cuts because of the inflation that still grows.
As for the British pound the Forex trades showed its growth in relation to the United States dollar. Moreover the UK GDP growth remained stable and kept its position of 0.4 percent throughout the first quarter of the year.
The 1.3 percent growth of the household spending attracted the traders’ attention, as it was quite unexpected.
But still there is no intention at the Bank of England to execute any interest rate cuts in the nearest future with an aim to support its currency.
