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EUR/USD Drops on Positive Developments in USA

December 22, 2011 by

EUR/USD spiked upwardly today, but retreated as the positive fundamental reports from the United States increased attractiveness of the dollar. The decreasing unemployment claims and the improving consumer sentiment confirm that the US economy recovers. The leading indicators were also positive and the economic growth accelerated, even though with slower pace than was previously estimated.

Initial jobless claims were at 364k (seasonally adjusted ) in the week ending December 17, falling from the revised 368k in the previous week. Forecasters predicted an increase to 376k. (Event A on the chart.)

US GDP grew 1.8% in the third quarter. That’s more than the increase by 1.3% in the second quarter. but less than analysts’ forecast and the advance estimate of 2.0%. (Event A on the chart.)

Michigan Sentiment Index was at 69.9 in December, according to the revised estimate, above the preliminary figure of 67.7 and the November value of 64.1 (Event B on the chart.)

Leading indicators increased 0.5% in November. That’s compared to the median forecast of 0.3% and the October increase of 0.9%. (Event B on the chart.)

EUR/USD for 2011-12-22

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