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Consumer Credit Declines and Pushes EUR/USD Down

July 8, 2009 by

The euro declined against the U.S. dollar as the oil price was heading down and the U.S. consumer credit continue to fall. The perspectives for the high-yielding assets look not very promising as the commodity/oil prices decrease and the risk-aversion returns to the market. EUR/USD is now trading near 1.3860.

Crude oil inventories declined by 2.9 million barrels last week, while the motor gasoline inventories gained 1.9 million barrels.

Consumer credit fell by $3.3 billion in May in United States. This decline followed $16.5 billion drop in April. The forecast for May’s change was at -$10 billion.

This Monday a report on the ISM index in the service sector was released. It rose from 44% to 47% for the month of June, which is better than 46% forecast but still means that the economy is contracting.

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