Trade Balance Deficit Shrinks, Budget Deficit Grows, Dollar Strengthens

EUR/USD fell today despite the not-so-good fundamental reports from the U.S. that were released today. The trade balance deficit wasn’t as good as the traders have expected, while the Treasury budget deficit grew significantly. And only oil reserves growth was a really positive signal for the dollar bulls. EUR/USD is now trading near 1.2881.
U.S. trade balance deficit was at $39.9 billion in December — down from $41.6 billion in November but below the quite optimistic estimate of $35.5 billion.
Crude oil inventories continued their gaining spree and increased by 4.7 billion barrels last week.
Treasury budget deficit in January was at $83.8 billion — up from $17.8 billion surplus in January of 2008. The forecast deficit for the previous month was at $78 billion.

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