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EUR/USD Weakens, Strives Higher as US Budget Deficit Grows

August 10, 2011 by

EUR/USD dropped today as markets remain in risk aversion mode and concerns about Europe’s future persist. The currency pair attempted to rally after the report showed that the US budget deficit widened last month, even though it was below expected value. It’s hard to say at present how sustainable this rally is.

Wholesale inventories were up 0.6% in June from May. That’s compared to the forecast value of 0.9% and the May increase by 1.7%. (Event A on the chart.)

Crude oil inventories decreased by 5.2 million barrels and total motor gasoline inventories decreased by 1.6 million barrels last week. Both and are in the upper limit of the average range. (Event B on the chart.)

Treasury budget deficit was $129.4 billion in July. The less than the expected value of $137.4 billion, but more than June figure — $43.1 billion. (Event C on the chart.)

EUR/USD for 2011-08-10

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