Euro Resumed Its Rally Against U.S. Dollar

The euro was crippled today after Moody’s Investors Service reduced Greece’s credit rating, but managed to recover and resumed its rally. The data from the U.S., released today, left mixed feelings, but James Bullard, the President of the Federal Reserve Bank of St Louis, reassured that “the macroeconomic recovery in the U.S. remains on track and may be complete in the third quarter”. EUR/USD rose currently to 1.2290.
N.Y. Empire State Manufacturing index rose to 19.6 in June from the previous reading of 19.1 in May. This figure below the forecasted 20.1.
Import and export prices, which were rising in tandem previously, posted mixed results today. U.S. import prices declined 0.6 percent in May after rising 1.1 percent in April, led by falling fuel prices. In contrast, the price index for U.S. exports increased 0.7 percent in May following increase of 1.2 percent in April.
Net long-term purchases of the U.S. securities by the foreign investors rose to $83 billion in April, which is lower than reading of $140.5 billion in the month earlier, but still better than forecasted figure of $77.3 billion.

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