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According to the latest economic data the United States dollar increased in relation to other major currencies but still it was quite affected by the fact of the decline of consumer spending and sales of property. The level of the consumer confidence is likely to fall to the 60.0 in the current month. According to Sal Guatieri at BMO Capital Markets the US consumers experience hard times due to decreasing house prices, growing energy and food prices and increasing rate of unemployment. The present fall of the consumer confidence level is one of the largest the US economy experienced.

The forex trades in Sydney resulted in certain decrease of the USD caused by the intention of the traders to make some changes after the UK and US markets will reopen in Tuesday. So the morning USD rate was at 103.16 yen and the Euro at $1.5787. According to the currency strategist at NAB Capital Markets – John Kyriakopoulos – the long holidays in the UK and US will not cause any significant changes. The last week stagflation trend will have its impact this week also and the crude oil price will remain the main factor defining the currencies exchange rates.

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.

Only few factors could contribute to the change the USD trend to decrease. We had only consumer confidence survey issued by University of Michigan in the end of the week. However, it didn’t turn to be a key point as it was only the revision of this index. And it’s quite low figures is the only reason why experts can not make any straight predictions concerning future move of the United States dollar.

This Tuesday the United States dollar reached the lowest point in relation to the Euro. Since then the USD keeps silence making traders doubt whether it has already reached the bottom or there will be further fall of the US dollar. As the point of 1.60 is not reached yet we may suppose that there is no more need in growing Euro at the moment, besides the news from the markets and announcements of the officials now turn to be positive for the United States dollar not Euro.

The United States dollar reached another low point it has never experienced before and the oil prices came closer to the price of $120 a barrel. The matter is that it is quite difficult to determine the initial reason of all changes when considering the US dollar and oil prices as low dollar leads to the growth of the oil prices and the oil prices affect the country economy. We cannot state with 100% confidence that high oil prices are caused by high inflation level as the situation is quite complicated and the Federal Reserve cannot afford interest rates hike to restrain the inflation.