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Good Trade Balance and Treasury Budget Reports Fail to Stop Correction on EUR/USD

August 12, 2008 (Last updated on September 17, 2010) by

Although, EUR/USD moved slightly above its opening level, this currency pair remained highly volatile today and reached a new minimum record since February 26 at 1.4815. The bullish spiked reached 1.4964 level. It failed to break above the 1.5000 resistance which may form a new psychological roof level for the next couple of weeks.

Trade balance deficit shrank in June as the exports grew significantly faster than imports. The deficit decreased to $56.8 billion — down from $59.2 billion in May and below the pessimistic $61.9 billion forecast.

Treasury budget report for June showed $50.7 billion surplus compared to $36.4 billion deficit in June 2007. Economic strategists expected the widening of the deficit to $86.8 billion.

2 Responses to “Good Trade Balance and Treasury Budget Reports Fail to Stop Correction on EUR/USD”

  1. Rajandran

    Hi Sir this is rajandran from India… I just want to know that most
    of the analyst are saying that US Dollar will collapse by 2008 END is
    it true.. Can I have your view about this.. I just check out the USD-JPY charts showing highly overboughtlevels almost all the TA indicators are indication at present and also USD-EUR Charts are indiacting the same….. But USD-INR is currenlty in oversold levels…..

    What All these things Lead to If there will be a collapse then what would be the effect on Global Markets and Indian Markets…. Or Easing Crude Oil
    is one of the factor for all these Oversold levels in USD-JPY or USD-EUR
    charts…. Iam Waiting for your reply

    Rajandran R


  2. Andrei

    Rajandran, what do you mean by dollar collapsing? >2.000 on EUR/USD it’s extremely improbable scenario, in my opinion.


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