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EUR/USD Down After Negative PPI, Steady Foreign Inflow

November 18, 2008 by

EUR/USD was trading with a very limited volatility today and currently stays slightly below the opening level after another portion of the mixed macroeconomic statistics came from U. S. EUR/USD is currently trading at 1.2586.

PPI (Producer Price Index) dropped by 2.8% in October after declining by 0.4% in September. It should have dropped only by 1.8%, according to the analysts’ forecast. Core PPI gained 0.4% — the same as in October and more than 0.1% growth expected by the analysts.

Net purchases of the long-term U.S. securities were at $66.2 billion in September after $21.0 billion in August (revised up from $14.0 billion). It exceeded the forecast value ($17.5 billion) by almost 4 times. The purchases are probably going to grow even in October as the U. S. Treasury securities were very popular among the investors during the crisis.

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