EUR/USD Falls Slowly, Fundamentals Are Pro Dollar

EUR/USD posted little daily volatility compared to the recent trading days today despite some interesting macroeconomic statistics coming out throughout the world. While the weekly jobless wasn’t very favoring for the greenback, the budget and trade balance deficits were better than expected and could help the dollar to grow against the euro. Anyway, EUR/USD dropped slightly today and is now trading near 1.4719 after opening at 1.4738.
Initial jobless claims increased to 474k last week in U.S. — up by 17k from the week before (457k). The forecasts were for a down move to 455k for this weekly employment indicator.
U.S. trade balance deficit declined from $35.7 billion to $32.9 billion in October. The exports grew faster than the imports. The average forecast value for the deficit was at $36.7 billion.
Treasury budget report for November showed a deficit of $120.3 billion — down from $176.4 billion deficit reported for October and also below $125.2 billion deficit reported for November 2008. The market analysts expected a deficit at $135 billion.

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

Leave a Reply

Your email address will not be published. Required fields are marked *