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EUR/USD Fluctuates, Heading to Weekly Drop

December 10, 2010 by

EUR/USD fluctuated today and currently trades near opening level. Earlier the currency pair fell as European policy makers divided in their opinion on how to battle the fiscal crisis. The dollar was further supported by favorable reports about declining trade balance deficit, growing import and export prices and improving consumer confidence. But later US currency weakened after a report showed that treasury budget deficit increased. EUR/USD now trades near it opening level of 1.3238.

US trade balance report today showed that a deficit decreased to $38.7 billion in October from $44.6 billion in September, while analysts expected that the deficit would be $43.5 billion.

US import prices increased 1.3% in November, following a 1.0% advance the previous month. Prices for US exports also rose in November, increasing 1.5% after advancing 0.8% in October. The median forecast was for import prices was 0.9% growth.

Preliminary Michigan Consumer Sentiment indicated a noticeable growth from 71.6 in November to 74.2 in December. Forecasts missed the actual value, promising a growth to 72.4.

US treasury budget deficit soared to $150.4 billion in November — worse than $140.4 billion deficit in a previous month. The forecast value was $129.8 billion.

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

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