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EUR/USD Erases Yesterday’s Losses

October 20, 2010 by

EUR/USD erased yesterday’s decline today on speculation that Beige Book report, released later today, will support the outlook for additional stimulus by the Federal Reserve to support US economy. Yesterday the currency pair slumped after China unexpectedly increased its interest rates. Perhaps, the decline was overdone. EUR/USD trades now at 1.3964 after it opened at 1.3726.

US crude oil inventories increased by 0.7 million barrels from the previous week. At 361.2 million barrels, U.S. crude oil inventories. Total motor gasoline inventories increased by 1.2 million barrels. Both are above the upper limit of the average range for this time of year.

Yesterday a report on housing starts and building permits was released. Building permits were at seasonally adjusted annual rate of 539k in September, below August reading of 571k. Housing starts in September were at a seasonally adjusted annual rate of 610k, near August rate of 608k.

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

One Response to “EUR/USD Erases Yesterday’s Losses”

  1. Pivotfarm

    QE is the big question, the direction that the Eurozone takes on this will be the ultimate decider of the Euro direction. We’re at a point of indecision right now, the recent rally was more or less the result of an expected easing in the use of QE. However recent ECB comments have turned that on its head.

    Reply

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