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EUR/USD Drops for Third Day as Economic Conditions Worsen

November 9, 2012 by

EUR/USD extended its drop for the third consecutive session today as industrial production in European countries, including France and Italy, declined and German’s inflation stalled. The data spurred talks that the European economic conditions continue to worsen. US data was completely opposite as it hinted on improving economy.

Import prices rose 0.5% in October, while no change was expected. The September rate of growth was 1.1%. Export prices remained unchanged last month, following the 0.8% in the preceding month. (Event A on the chart.)

Michigan Sentiment Index was at 84.9 in November, according to the preliminary estimate, while it was expected to stay at the October level of 82.6. (Event B on the chart.)

Wholesale inventories grew 1.1% in September, compared to analysts’ expectations of 0.4% growth. The August change was revised up from 0.5% to 0.8%. (Event B on the chart.)

EUR/USD for 2012-11-09

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

One Response to “EUR/USD Drops for Third Day as Economic Conditions Worsen”

  1. Eric D

    Despite the positive input of the fundamentals behind the events marked as A and B for a negative effect on the US, which obviously would correct the EUR/USD ratio in favor of the Union we have seen a very long term of declining Euro zone financial conditions, thus this could end up being a correction in the larger timeframes, let’s see what the US fiscal cliff beginning next year or by the end of this one has prepared for us.

    Reply

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