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EUR/USD Erases Gains as Traders Feel Depressed

March 21, 2012 by

EUR/USD slipped today on depressed mood among Forex traders that made them avoid riskier assets. Earlier, the euro reached the highest level in two weeks as the Greek Parliament voted in favor of a new bailout package. The US housing market continued to puzzle traders by showing mixed results.

Existing home sales edged down to the seasonally adjusted annual rate of 4.59 million in February from 4.63 million in January (upwardly revised from 4.57 million). (Event A on the chart.)

Crude oil inventories decreased by 1.2 million barrels and total motor gasoline inventories decreased by 1.2 million barrels last week. Both are in the upper limit of the average range. (Event B on the chart.)

Yesterday, a report on housing starts and building permits was released, showing that housing starts decreased a little to 698k in February from 699k a month ago, while building permits were up to 717k from 676k. The actual value for housing starts were exactly the same as analysts’ forecast, while building permits were better than the predicted 690k. (Not shown on the chart.)

EUR/USD for 2012-03-21

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