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EUR/USD Surges as Court Allows Germany’s Participation in ESM

September 12, 2012 by

EUR/USD jumped today to the highest level since May as the German Constitutional Court agreed that the nation may participate in the European Stability Mechanism. The dollar was weak as Moody’s Investor Service warned that the United States may lose the top Aaa credit rating. Today’s US data was mildly positive, though worse than analysts anticipated.

Export and import prices rose in August. Import prices advanced by 0.7%, while they fell by the same rate in the preceding month. Analysts’ projections pointed at 1.4% growth. Export prices increased 0.9 percent following the 0.4 percent rise in July. (Event A on the chart.)

Wholesale inventories rose 0.7% in July from the month before, when they fell by 0.2%. The median estimate promised a smaller increase by 0.3%. (Event B on the chart.)

Crude oil inventories increased by 2.0 million barrels and total motor gasoline inventories decreased by 1.2 million barrels last week. (Event C on the chart.)

EUR/USD for 2012-09-12

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