Forex Blog

First-hand Forex trading experience and information about foreign exchange market that will be useful to traders


EUR/USD Extends Rally, Caused by ECB

January 11, 2013 by

EUR/USD extended its rally today as optimism, caused by yesterday’s comments of European Central Bank President Mario Draghi, persisted and continued to bolster risk appetite of investors. The data from the United States was not particularly good, except for the federal budget balance, which was better than expected.

Trade balance deficit unexpectedly widened to $48.7 billion in November up from $42.1 billion in October. Market participants have expected that the deficit would narrow to $41.1 billion. (Event A on the chart.)

Both import and export prices fell 0.1% in December, while analysts have promised that prices for imports would rise by the same rate. Import prices fell 0.8% and export prices declined 0.7% in November. (Event A on the chart.)

Treasury budget deficit shrank from $172.1 billion in November to $0.3 billion in December. The predicted value was $11.6 billion. (Event B on the chart.)

EUR/USD for 2013-01-11

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

Leave a Reply

required (will not be published)