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EUR/USD Falls to Two-Year Low

July 12, 2012 by

EUR/USD continued to fall today, reaching the lowest level in two years. In the United States, on one hand, import and export prices fell last month. On the other hand, unemployment claims declined last month and the federal budget balance posted much smaller deficit than was expected.

Initial jobless claims fell to 350k last week (seasonally adjusted), while they were expected to stay at the previous week’s level of 376k. (Event A on the chart.)

Both import and export prices were down in June. Import price declined 2.7%, following the 1.2% fall in May. Analysts expected a decline by 1.5%. Export prices fell 1.7% after dropping 0.4% in the preceding month. (Event A on the chart.)

Treasury budget deficit shrank to $59.7 billion in June from $124.6 billion in May. The median estimate before the report was $91.7 billion. (Event B on the chart.)

EUR/USD for 2012-07-12

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