The dollar continues its downfall against the euro in anticipation of another round of quantitative easing. Fundamentals don’t provide support for the US currency as reports about trade balance and jobless claims were somewhat worse than expected. EUR/USD surge today to 1.4121 and settled for now at 1.4069.
Producer Price Index (PPI) increased 0.4% in September, seasonally adjusted, following a 0.4% rise in August. The expected value was 0.2% increase.
Trade balance deficit in August was $46.3 billion, up from $42.6 billion in July. Analysts expected more moderate increase to $43.5 billion.
Initial jobless claims surged from 449k to 462k last week, instead of decreasing to the predicted 448k.
US crude oil inventories decreased by 0.4 million barrels from the previous week. Total motor gasoline inventories decreased by 1.8 million barrels.
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