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Friday, May 26, 2006

FX Closing Comments

There was a modest move in the EUR/USD favoring the Euro after the University of Michigan reports U.S. consumer sentiment fell to 79.1 from April's 89.4 reading. The survey's index of current conditions fell to 96.1 in May from 109.2 in April, while consumer expectations fell to 68.2 from 73.4 in April. The Inflation expectation median rose to 4% in May from 3.3% in April. The University of Michigan's median five-year U.S. inflation expectation was 3.2 percent in May. Consumer spending accounts for about two-thirds of all U.S. economic activity, but in recent years confidence measures have been a weak guide to actual spending plans. All in all, today has been an uneventful, pre-holiday, range-bound market.