EUR/USD at Max Level Since August 2008
EUR/USD rose to its maximum level in more than a year today as the set of the fundamentally stimulating reports moved the global stock markets up, lowering the attractiveness of the U.S. dollar as a reserve currency. Along with the better than expected macroeconimical statistics and the FOMC minutes release, EUR/USD was also spurred by the good financial reports from the major U.S. companies. The currency pair is now trading near 1.4913, while the daily high was set at 1.4946.
Advance retail sales report for September showed a monthly decrease by 1.5%, which followed a 2.2% growth during a previous month. The decrease isn’t a good result but the forecasted change was -2.1%, which would have been much worse.
U.S. export prices decreased by 0.3% in September after rising by 0.7% in August, while the import prices went up by 0.1% after rising by 1.6% a month earlier.
Business inventories fell by 1.5% in August, following a decrease by 1.1% and a forecast of a decrease by 1%.
Crude oil inventories dropped by 1.0 million barrels last week and total motor gasoline inventories increased by 2.9 million barrels during the same period.
If you have any comments on the recent EUR/USD action, please, reply using the form below.
Tags: business inventories, crude oil inventories, export and import prices, retail sales
October 15th, 2009 at 3:37 am
I wonder if it’s a good time to go for a downtrend…
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Andrei Reply:
October 15th, 2009 at 9:02 am
You know, the EUR/USD is now at a resistance level (weekly chart) and is very overbought (stochastic oscillator on weekly chart) but currently there are no fundamental ground for EUR/USD to go down and the sentimental background suggests further growth of EUR/USD. That’s for medium-term. Of course, there is possibility of a short-term (1-2 days) correction here.
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