Forex: EUR/USD falls below 1.3600 again; Wall Street falls further

Wed, May 13 2009, 17:22 GMT
http://www.fxstreet.com
FXstreet.com (Barcelona) - After rebounding from 1.3570 support and rising above 1.3600 and reach 1.3660 level, the EUR/USD is falling again, currently the pair has lost 75 pips to reach 1.3585. The pair is declining 0.60% so far today from opening price action. US Stock market is falling on concern in economy.Dow Jones is declining 2.20% so far today, S&P 500 falls 2.54% and the Nasdaq index is losing 2.54% during its session.According to Michael J. Malpede, analyst at Easy Forex, USD is Higher, supported by a spike in risk aversion as weak US retail sales dampens risk appetite and EUR is Lower, EU industrial output falls at a record pace, ECB may increase bond purchase: "USD turned higher as equity markets weakened and economic data from Europe was disappointing. Also the rating agency warning noted by the Financial Times was more than two years old. Concern about US bond rating, Bank of England report and report of a record drop in EU industrial output sparked selling of equity markets and a spike in risk aversion. In addition, China's April industrial production slowed. The trade is debating whether global economy is bottoming or if recent signs of recovery are little more than false hope. Today's Bank of England report, weaker industrial production reports in China and the EU and bigger decline in US retail sales than expected generate concern that the recent rise in global equity markets and optimism about the global economy may be premature."