EUR/USD Plunges as US Economy Looks Better than European
The US dollar climbed against the euro today as the US economy continued to perform much better than the European one. The currency fell a little against the Great Britain pound and was flat versus the yen.
Today’s data from Europe showed that its economy continues to struggle. Eurozone industrial production fell 0.4 percent in January from December. French non-farm payrolls dropped 0.3 percent in the fourth quarter of 2012 from the previous three months.
In contrast, the US economy looked good. Most of today’s reports were favorable, including retail sales, which increased 1.1 percent in February, compared to the forecast of 0.5 percent. Yet there was some negative data too, like the federal budget balance, which posted the huge deficit of $203.5 billion in February after posting the surplus of $2.9 billion in January.
EUR/USD fell from 1.3032 to 1.2957 as of 21:57 GMT today. GBP/USD was up from 1.48999 to 1.4918, but retreated from the daily high of 1.4980. USD/JPY was flat at 96.07 after falling to 95.44.
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Earlier News About the US Dollar:
- US Dollar Index Slips as Traders Look for Direction (2013-03-12)
- Another Week of Gains of US Dollar (2013-03-09)
- US Non-Farm Payrolls Much Better Than Expected, Lifting Dollar (2013-03-09)
- Dollar Loses to Euro, Jumps to Highest Since 2009 vs. Yen (2013-03-08)
- US Dollar Index Heads Higher Today (2013-03-06)