EUR/USD tumbled today on the speculation that the economic imbalances in the European Union will force the European Central Bank to slow pace of interest rates hikes, while the US economy shows sign of recovery. The reports about import and export prices and about the budget balance were surprisingly good. EUR/USD currently trades at about 1.4350.
US import and export prices grew in May. Import prices increased 0.2% in May after advancing 2.1% in April. The median forecast was a decrease by 0.6%. Export prices rose 0.2%. (Event A on the chart.)
Treasury budget posted a deficit of $57.6 billion in May instead of a $123.2 billion deficit expected by analysts. In April the deficit was $40.4 billion. (Event B on the chart.)
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