EUR/USD Drops Ahead of Weekened, Attempts to Rebound

EUR/USD was falling today at the first half of the trading session, but it is rising currently and may yet erase its losses. The news from the United States was positive, bolstering traders’ confidence and adding to the upward momentum of the currency pair. President Barack Obama is going to meet with congressional leaders to discuss measures for avoiding the fiscal cliff. Today’s data showed that the US housing market is improving and the business activity is expanding.
Chicago PMI rose from 50.4 in November to 51.6 in December. The reading was slightly above the predicted 51.2.
Pending home sales climbed 1.7% in November. That was a pleasant surprise for traders as they were expecting a drop by 0.3%. As for negative news, October increase was revised down from 5.2% to 5.0%.
Crude oil inventories decreased by 0.6 million barrels last week (analysts have predicted a 1.6 million drop) and are well above the upper limit of the average range for this time of year. Total motor gasoline inventories increased by 3.8 million barrels and are well above the upper limit of the average range.


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