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EUR/USD Drops to Lowest Since August 2010

January 13, 2012 by

EUR/USD dropped today, erasing yesterday’s gains and touching the lowest level since August 2010, on fears of potential credit downgrades of European countries by Standard & Poor’s. Confidence of US consumers improved more than was predicted, but trade balance deficit widen more than was forecast, while import and export prices declined.

Trade balance deficit rose to $47.8 billion in November up from $43.3 billion in October. Not a good news as only a little increase to $44.8 billion was predicted by market analysts. (Event A on the chart.)

US import and export prices fell in December. Import prices dropped 0.1%, following the 0.8% increase in November, while they were expected to stay unchanged. Export prices declined 0.5%, following the 0.1% advance in the month before. (Event A on the chart.)

Michigan Sentiment Index rose from 69.9 (revised from 67.7) in December to 74.0 in January, according to the preliminary estimate. An average forecast was 71.2. (Event B on the chart.)

EUR/USD for 2012-01-13

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

3 Responses to “EUR/USD Drops to Lowest Since August 2010”

  1. Madoda

    The way I see the political situation in Europe and the downgrading of some euro zone countries, the euro is gonna continue to go down.

    Reply

  2. kamarul anuar othman

    hello…i do agree with you,the pair gave me almost a heart attack by seing the pair suddenly fall for almost 150pips++.i had and open buy position after detecting a double bottom pattern emerged at H$ timeframe.So,do you think the pair may makes a move for abull..i hope did not hit my SL..

    Reply

  3. Alexander Collins

    I also saw a man who was waiting for a rise of EUR/USD before Christmas (he already had 50% of deposit). I hope he didn’t burn his account.

    Reply

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