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U.S. Trade Balance Continues Improving, Dollar Gains

July 10, 2009 (Last updated on August 12, 2009) by

The  U. S. dollar rose against the euro today as the currency market participants reacted to the improved trade balance deficit report, which showed another decline for the month of May. Also the whole recent trend for going into safer assets is still in its power, helping such currencies as the dollar and the yen to compete in Forex. EUR/USD is now trading near 1.3924.

Trade balance deficit decreased to $26.0 billion in May — down from $28.8 billion reported for April. The economic analysts expected a gain to $30 billion in deficit. The exports rose, while the imports fell in May.

Overall import prices in U.S. gained 3.2% in June compared to the previous month but the largest portion of that gain should be attributed to the oil’s price growth. Export prices rose by 1.1% in June, with the big part of the gain attributed to the agricultural exports (4.8% price growth here).

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