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EUR/USD Gives Ground as Negativity Persists

November 16, 2012 by

EUR/USD submitted to negative fundamentals at last, falling today after two sessions of gains. Europe’s fundamental data continues to be poor and the fact that the Greek parliament voted for austerity measures did not help traders’ confidence as that did not ensure a bailout for the indebted country. The US reports today continued this week’s trend of bad data, signaling that the US economy is not without its share of problems.

Net foreign purchases were at $3.3 billion in September, sinking from August’s $90.3 billion. The average forecast was at $75.0 billion. (Event A on the chart.)

Both industrial production and capacity utilization edged down in October. Industrial production fell 0.4%, while analysts have hoped it would grow at the previous month’s revised rate of 0.2%. Capacity utilization slipped from 78.2% to 77.8% instead of rising to the predicted 78.4%. (Event B on the chart.)

EUR/USD for 2012-11-16

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