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EUR/USD Falls Despite U.S. Trade Balance Deficit Gain

June 10, 2009 by

Euro declined against the U.S. dollar today after growing during the early trading session and yesterday. The increased U.S. trade balance deficit didn’t help the Eurozone currency to advance against the greenback. Traders probably treated the drop in imports and exports as the negative factors for the global financial system. EUR/USD is now trading near 1.3918.

Trade balance deficit in goods and services was at $29.2 billion in April — up from $28.5 billion reported in March (revised from $27.6 billion). Consensus forecast was not far from the actual value — at $29 billion.

Crude oil inventories decreased by 4.4 million barrels last week after increasing by 2.9 million barrels during a previous week. Nevertheless, oil inventories are still above the upper boundary of the average range for this time of year.

U.S. treasury budget deficit reported for May was at $189.7 billion — up from $165.9 billion in May 2008. The forecasts showed $181 billion deficit.

Yesterday, a report on wholesale inventories for April was released. They fell by 1.4%, following a decline by 1.8% in March (revised negatively from 1.6% drop). Forecasts signaled a drop by only 1.1% for April.

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