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EUR/USD Falls on Lower Jobless Claims & Budget Deficit

February 10, 2011 by

EUR/USD fell today as the report about the US jobless claims didn’t support the prediction of Federal Reserve Chairman Ben Bernanke that unemployment will remain elevated. The budget deficit also showed a pleasant surprise, decreasing much more than analysts expected. EUR/USD trades currently at 1.3599.

Initial jobless claims decreased to 383k last week from the previous week’s revised figure of 419k. The decrease was bigger than the expected drop to 411k. (Event A on the chart.)

Wholesale inventories were up 1.0% from the revised November level. The median forecast was 0.7%. The November preliminary estimate was revised upward, from -0.2% to zero change. (Event B on the chart.)

US Treasury budget deficit continued to decline, shrinking to $49.8 billion in January from $78.1 billion in December, while economists expected the deficit to be around $69.5 billion. (Event C on the chart.)

EURUSD for 2011-02-10

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