Dollar Consolidates on Trade Balance Deficit Growth
EUR/USD consolidated today with a previous movement both up and down, as the traders are unsure about the further direction for the pair. The dollar’s dynamics against the euro is affected strongly by the events in Europe and less of the market participants look seriously at the U.S. statistics nowadays. EUR/USD is now trading near 1.3599.
U.S. trade balance deficit rose from $37.0 billion to $39.7 billion in February as the imports rose 10 times faster than the exports during the month. The median forecast value for the deficit was at $39.0 billion.
Both import and export prices rose by 0.7% in February in United States. This growth followed 0.2% drop for the import prices and 0.4% drop for the export prices reported for January.
Yesterday, a report on the U.S. Treasury budget for March was released. It showed a deficit of $65.4 billion, which significantly below the $191.6 billion deficit reported for March 2009, but is worse than $62.0 billion deficit predicted by the analysts.