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EUR/USD Falls After Advance on FOMC Minutes

October 13, 2010 by

The euro was rising today against the dollar, which continued its decline against most other currencies after yesterday’s FOMC minutes suggested that next round of quantitative easing may be performed soon. Recently the EUR/USD currency pair expected a sharp decline but for now stays above the opening level. EUR/USD trades currently at 1.3929, near its opening level of 1.3923, after it surged to the intraday high of 1.4001.

US import and export prices in September were reported today. Import prices dropped 0.3%, following a growth by 0.6% in August. Analysts expected a 0.1% decline. The main reason of prices decline was decrease of fuel prices, which outweighed increase of non-fuel prices. Export prices went up 0.6% in September, following a 0.8% increase in the previous month.

Federal Open Market Committee release minutes of its meeting yesterday. The minutes didn’t said anything particularly new, confirming that the Federal Reserve may increase its Treasury purchases. Market reacted on this release, nonetheless, driving the dollar tumbling down.

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

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