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EUR/USD Reverses Decline as Retail Sales Drop

March 23, 2011 by

EUR/USD extended its decline for the second day today, but later reversed the trend and currently the currency pair rises. The unexpectedly big decline of the US new home sales possibly contributed to the weakening of the dollar. EUR/USD trades at 1.4137 now.

New home sales in the US decreased to 250k (seasonally adjusted) in February the revised January rate of 301k. The reading was a way below the market expectations of 291k. (Event A on the chart.)

Crude oil inventories increased by 2.1 million barrels from the previous week. Total motor gasoline inventories decreased by 5.3 million barrels last week. (Event B on the chart.)

EURUSD for 2011-03-23

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