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U.S. Dollar Weakens on Bad Jobless Data

November 13, 2008 (Last updated on September 17, 2010) by

EUR/USD moved in a fundamentally explainable trend today as the dollar fell before and after the quite worrying report on the new jobless claims in U.S. Although the trade balance deficit change was positive, the traders expected such result and didn’t value it much into the actual market. The budget deficit report has also disappointed the dollar bulls, pushing the dollar down on the market. EUR/USD is currently trading near 1.2525.

Initial jobless claims rose from 484,000 to 516,000 last week, breaking the psychologically important level of a half a million. This shows that the problems in the employment sector are still worsening.

U.S. trade balance deficit tightened to $56.5 billion in September down from $59.1 billion in August as the imports fell faster than the exports. The extremely fast decline in the oil prices was the major contributor to the deficit decrease. Market analysts expected that the trade balance deficit will drop to $56.8 billion.

U. S. Treasury budget deficit grew unexpectedly from $56.8 billion to $237.2 billion in October. The median forecast by the economic strategists was at $200 billion.

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