EUR/USD Slumps After Rally as ECB Fails Ease Concerns

EUR/USD was rising today, but later dropped sharply. The European Central Bank was providing loans today to support the eurozone economy, but the bank’s effort failed to alleviate the fears of the debt crisis. Today’s report confirmed that the US housing market is improving, even though the actual reading was below the median forecast.
Existing home sales rose to a seasonally adjusted annual rate of 4.42 million in November from 4.25 million in the month before. The reading missed the forecast of 5.04 million. (Event A on the chart.)
Crude oil inventories decreased by 10.6 million barrels, while total motor gasoline inventories decreased by 0.4 million barrels last week. (Event B on the chart.)

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