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EUR/USD Drops After EU Summit Started

October 26, 2011 by

EUR/USD fell today, while earlier it was moving sideways as traders waited for the outcome of today’s European Union summit. The drop was sharp and its cause is unclear. Today’s data about the US housing market contradicted yesterday’s report as it showed an improvement instead of worsening conditions.

Durable goods orders decreased 0.8% in September, following the drop by 0.1% in August. The forecasts were near the actual value, predicting a 0.7% fall. (Event A on the chart.)

New home sales were at a seasonally adjusted annual rate of 313,000 in September. The report indicates an improvement of the US housing market as this value is above the median forecast of 302,000 and the revised August rate of 296,000. (Event B on the chart.)

US crude oil inventories increased by 4.7 million barrels from the previous week. Total motor gasoline inventories decreased by 1.4 million barrels last week. Both are near the upper limit of the average range. (Event C on the chart.)

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

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