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EUR/USD Slips as Italian & Spanish Borrowing Costs Grow

December 14, 2011 by

EUR/USD slipped today as costs of Italy’s and Spain’s debt increased. The currency pair followed yesterday’s patter: it was moving sideways in the first half of session, but broken down in the second half. The US import and export prices report left mixed feelings. It was noticeably better than the data in the previous month, but worse that the market expectations.

US import and export prices rose on November. Import prices increased 0.7 percent, a noticeable improvement over the 0.5 percent drop in October, but still below th forecast of 1.0 percent. Export price rose just 0.1 percent, but that was also a huge improvement compared to the October drop by 2.1 percent. (Event A on the chart.)

Crude oil inventories decreased by 1.9 million barrels, while total motor gasoline inventories increased by 3.8 million barrels last week. (Event B on the chart.)

EUR/USD for 2011-12-14

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