Our previous worries that the dollar would continue to slide during the period under review (May 19 -31) came to fruition as the currency struggled to get below the $1.20 mark compared with the euro.

However,  the poor European outlook and better indicators for the US economy could begin to effect a change, though the dollar’s long term prospects will depend heavily on the development of the major economies in the second half of the year.  The positive data from the US appears to becoming more stable and frequent.  Not only were the latest unemployment figures down, but the rise in the consumer confidence index beat all expectations, jumping 9.6 index points to 94.4.

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