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Euro Posts Small Gain as Economic Conditions Improve

April 9, 2009 by

EUR/USD is currently trading with a small daily gain after a rather weird volatility demonstrated yesterday (it posted long spikes both up and down but closed near the open level). The  U. S. fundamental released are quite optimistic. Although they should benefit U.S. currency more, the whole risk-aversion decrease favors such currencies as the euro more than such as the dollar. EUR/USD is now trading near 1.3280.

U.S. import prices rose by 0.5% in March, following 0.1% decline in February, while export prices decreased by 0.6% after falling by 0.3% in February. This is quite good for the U.S. companies as their products are becoming more competitive.

Initial jobless claims were at 654k — a little below the previous week’s value of 674k (revised from 669k).

U.S. trade balance deficit shrank unexpectedly fast in February — from $36.2 billion to $26 billion, as the imports declined strongly, while the exports rose in that month.

2 Responses to “Euro Posts Small Gain as Economic Conditions Improve”

  1. Hassam

    Does this mean start of a trend in EUR/USD?


    Andrei Reply:

    That can mean a lot of things, but the long term trend in EUR/USD is already on, in my opinion.


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