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EUR/USD Fluctuates on Declining U.S. Optimism

January 13, 2010 by

The EUR/USD currency pair had a day of high volatility as the dollar is experiencing a decline on its sentiment, since the U.S. economy provided some worse than expected figures in reports published during the past few days. Today’s beige book was expected with concern by some analysts with a negative tone which was not confirmed in the publication. After trading much higher earlier, currently EUR/USD is falling at 1.4498.

U.S. crude oil inventories increased by 3.7 million barrels from the previous week while total motor gasoline inventories increased by 3.8 million. Both oil and motor gasoline inventories are above the upper limit of the average range.

Treasury budget report showed a deficit of $91.9 billion in December from a higher previous deficit of $120.3 billion in November. Actual figures were slightly off expecting a deficit of $88.9 billion for the federal budget balance.

U.S. trade balance figures published yesterday indicated an increased deficit of $36.4 billion in November from a previous monthly deficit of $33.2 billion, revised in the current report. Forecasts were more optimistic, expecting a deficit of $34.9 billion.

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

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