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EUR/USD Posts Bearish Day on Better Treasury Flows

October 16, 2009 by

The EUR/USD currency pair declined on the Forex market today, close to its Wednesday open level as the U.S. treasury notes still show some demand among the foreign investors. Industrial production report also turned out to be positive for the U.S. dollar for some reason. EUR/USD is currently trading near 1.4871.

Net long-term purchases of the U.S. securities by the foreign investors were at $28.6 billion in August — almost twice as much compared to $15.3 billion in July. The currency traders expected a higher value ($30 billion) but that’s still an optimistic result for the U.S. economy and the dollar.

Industrial production and capacity utilization both increased in September. The production wen up by 0.7% after rising by 1.2% a month ago (positively revised from 0.8%) — significantly faster than the expected growth of 0.2%. Capacity utilization increased from 69.9% (revised from 69.6%) to 70.5%. The estimated value was 69.8%.

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

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