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Good US Economic Data Trims Outlook on Quantitative Easing

October 27, 2010 by

US economy continues to produce unexpectedly good results, driving EUR/USD further down. This data also influence the outlook for quantitative easing, which in turn boosts dollar. Quantitative easing was already priced in the dollar price, so speculation about less additional stimulus drives dollar up. EUR/USD trades now near 1.3794.

US durable goods orders increased by 3.3% in September, following a decline by 0.1% a month earlier. The traders expected more modest growth by 1.7%.

New home sales were at a seasonally adjusted annual rate of 307k in September. This is above the revised August rate of 288 and the predicted valued of 301k.

Crude oil inventories increased by 5.0 million barrels last week. Total motor gasoline inventories decreased by 4.4 million barrels.

If you have any comments on the recent EUR/USD action, please, reply using the form below.

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