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EUR/USD Advances as Inflation in Eurozone Accelerates

January 31, 2011 by

The dollar fell against the euro today as consumer prices in the Eurozone rose faster than anticipated. The economic growth in the US also gains momentum as was shown by today’s reports. EUR/USD trades currently at about 1.3716.

Personal income and spending increased in December by 0.4% and 0.7% respectively. In November,
personal income increased 0.4% and personal spending increased 0.3%, based on revised estimates. Spending increased more than 0.6% economists expected, while increase of income was lower than the expected growth by 0.5%. (Event A on the chart.)

Chicago PMI was at 68.8 in January, seasonally adjusted, while its was expected to decline to 65.5. The previous reading was revised downwardly from 68.6 to 66.8. (Event B on the chart.)

EUR/USD for 2011-01-31

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