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EUR/USD Declines After It Rose on Talks About Ireland’s Bailout

November 16, 2010 by

EUR/USD currency pair jumped today in the first half of the trading session, but later returned to its opening level. That was an unexpected move as virtually all reports from the US were worse than forecasts promised. Speculations that Ireland would be able to inject funds into its banks after talks with EU and IMF officials also should supported the euro. Yet for now the European currency declines, though attempts to reverse its downward trend. Currently EUR/USD trades at 1.3602 after it jumped to the intraday high of 1.3654.

PPI increased 0.4% in October, seasonally adjusted, following a 0.4% rise in both September and August. Economists expected a bigger increase by 0.7%.

Net long-term purchases of the U.S. securities by the foreign investors were at $81.0 billion in September, while it was $128.7 billion in August. The median forecast was $100.3 billion.

A report on industrial production and capacity utilization was released today, showing somewhat lower numbers than was expected. Industrial production remained unchanged in October, while it was predicted to rise 0.4%. A previous reading was showed a decline by 0.2%. Capacity utilization was at 74.8, at the same rate as in September, while a slight growth to 74.9% was expected.

If you have any comments on the recent EUR/USD action, please, reply using the form below.

One Response to “EUR/USD Declines After It Rose on Talks About Ireland’s Bailout”

  1. Yassine

    The EURUSD looks like it’s on a big retracement as you can see on this chart http://www.mibian.net/#!/eurusd especially if we consider the non-stop rise during the last two months. Anyway, the USD have been rising across the board lately.

    Reply

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