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EUR/USD Goes Up as Focus of Concerns Shift from E.U. to U.S.

July 13, 2010 by

EUR/USD currency pair went up, following two days of losses, after Greece auctioned its debt, despite it fell at the star of trading session as Moody’s Investor Service has cut Portugal’s credit rating. Widening U.S. trade balance deficit hadn’t helped the dollar to outperform the euro. EUR/USD trades near 1.2711 now.

U.S. trade balance extended its deficit, reaching $42.3 billion, up from $40.3 billion in April, revised. This figure frustrated analysts, who expected decrease of the deficit to $39.3 billion, and showed that the U.S. still imports much more than it exports.

U.S. treasury budget deficit was $68.4 billion in June, down from $135.9 billion in May. This reading was in line with expectations, though expected deficit was somewhat bigger — $70.0 billion.

Last Friday report on wholesale inventories was released. It showed that wholesale inventories rose by 0.5% in May, following a 0.4% increase in April.

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