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Euro Rises Against Dollar on Housing Decline in U.S.

September 17, 2008 by

Dollar dropped its position against the euro today after the yesterday’s interest rate decision failed to support the U.S. currency for more than several hours. Poor housing reports showed another (unnecessary) sign of the ongoing recession in the United States. At this level interest rate don’t play the role they usually do. Traders try to look at the countries’ financial system and sell the money of the worst. EUR/USD is currently trading near 1.4180 level.

Housing starts in U.S. were reported at 895k annual rate in August, following 954k rate in July, — significantly below the 950k forecast. Building permits also dropped at a very large scale — from 937k to 854k; they were expected to go down only to 925k.

Crude oil inventories decreased by 6.3 million barrels last week after declining by 5.9 million barrels a week earlier. They are still in the lower half of the average range for this time of year.

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