U.S. Dollar fell against the euro Tuesday as weak U.S. housing and confidence data and extremely low interest rates dimmed the greenback's appeal.
Now the fed rate near to zero and the European Central Bank's more cautious approach is lending support to the euro and hurting the dollar.
The Standard & Poor's/CS index of home prices in 20 cities was down 18% in October from a year ago, the biggest drop since records began in 2000. And The Conference Board's index of consumer confidence fell from 44.7 to 38.0 in December, weaker than expected.
The Chicago purchasing managers' index fell improved from 33.8 to 34.1 in December, still a sign of contraction.
On weekly basis Dollar continued its weakness against the Euro and major currencies last week as the grim outlook for the U.S. economy at the start of 2009 and as trading thins out ahead of the year end and weak job data .
Most of the data’s released in the last week also were not supporting the dollar s movements .Dollar has been under selling pressure against the major currencies after the Federal Reserve slashed its key interest rate to just about zero to save the U.S. economy.
In spot, dollar closed at 1.4069 against the euro, after trading in the range of 1.422 – 1.3915
Weekly Outlook (DEUR March.)
Expected trading range is 139.80 and 141.45 breaking of either side may decide the direction .Resistances are 139.10, 138.25, 136.40; Supports are 143.05, 144.35, and 146.68
Last day, DEUR MAR. traded in the range 139.61 – 141.77and closed at 140.95
