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EUR/USD Up on Trade Balance Deficit and Fed Decision Expectations

August 12, 2009 (Last updated on September 17, 2010) by

The most popular Forex currency pair gained today, going above the highs of the previous two days, as the traders reacted to the increased U.S. trade balance deficit and the expectations of a  liquidity-increasing decision from the Fed later today. EUR/USD is now trading near 1.4200.

U.S. trade balance deficit was reported at $27.0 billion for June, following $26.0 billion reported for May. Market analysts expected a growth of the deficit to $28.7 billion for that month.

Commercial crude oil inventories continued to gain in the United States last week and added 2.5 million barrels. Total motor gasoline inventories decreased by 1 million barrels during the same period.

U.S. budget deficit in July went up to $180.7 billion compared to $102.8 billion during the same month a year ago. The total yearly budget deficit is now at a new record high of $1.267 trillion.

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