EUR/USD Slips as Greece Doesn’t Receive Rescue

EUR/USD was dropping today virtually without pause, a trend that started yesterday’s evening. The major news today was a denial of the new portion of bailout for Greece until Greek leaders would agree on deeper budget cuts. Forex market roiled on the news as it looked like the next round of rescue was almost a done deal. Data from the United States was a mixed bag today as the drop of consumer sentiment was followed by the sharp decline of federal budget deficit.
US trade balance deficit rose a little to $48.8 billion in December from $47.1 billion in November, matching the forecast of $48.1 billion. (Event A on the chart.)
Michigan Sentiment Index fell from 75.0 (revised from 74.0) in January to 72.5 in February, according to the preliminary estimate, while it was expected to change only a little to 74.4. (Event B on the chart.)
Treasury budget deficit dropped sharply to $27.4 billion in January from $86.0 billion in December. Market analysts were pleasantly surprised as they expected only a moderate decline to $58.5 billion. (Event C on the chart.)

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