Euro/Usd support level holding so far

by Angelo Airaghi [Guest Analyst]
6/4/2007
As the European economy maintains a strong momentum in most of its productive sectors, the European Central Bank is meeting this week in Frankfurt am Main (Germany). A decision on rates is a possibility that could help shake the European currency after the recent period of consolidation.

U.S. Growth Process Might Again Pick up.
The U.S. economy remains in good conditions, albeit moderating, as labor market and consumer confidence are balancing strong gasoline prices and the unstable housing market. The average monthly increase in employment slowed in the first six months of 2007, from the 189,000 average monthly gain seen in 2006 to the 133,000 pace in 2007, but overall the unemployment rate is still near the lowest level in more the five years. In May, U.S. nonfarm payrolls increased by a better than expected 157,000, above the 150,000 units previously forecasted, and the unemployment rate remained unchanged at 4.5%. The service sector (176,000 new positions) contributed to all the job growth in May. Income keeps on expanding as well, hourly earnings are up 3.8% in the past year and weekly earnings are targeting 4.1%, to testify an healthy labour market that should support consumer spending in the coming months.