The euro is trading at $1.3196, down 0.15%, after Standard and Poor’s (S&P) raised their outlook for the US economy from negative to stable. The ratings agency stripped the US of its triple-A rating and lowered its outlook to negative in 2011. . The credit-rating agency cited the country’s high GDP and expected future growth rates as the reason for upping the outlook, prompting traders to sell the euro and buy the dollar.
Weak economic indicators from the eurozone also pushed EUR/USD lower. The Sentix index, which measures investor confidence in the region, came in at -11.6 in May, against an expected measurement of -10.0. Any negative reading indicates a pessimistic outlook.
Italian industrial production dropped in April, contracting by 0.3% compared with March – the third consecutive monthly drop in industrial production.