Euro Outperforms Dollar for Third Day
The euro extended its rally for a third day as growing Chinese exports suggested that an impact of the European troubles on the global economic recovery might be alleviated by the Asian economic growth. In the same time, today’s reports showed not the best results for the U.S. economy with the growing number of initial jobless claims and the increasing budget deficit. EUR/USD trades currently at 1.2105.
U.S. trade balance posted a deficit of $40.3 billion in April, up from $40.0 billion in March. The median forecast value for the deficit was $40.8 billion.
Initial jobless claims dropped to 456k last week from the revised figure of 459k the week before. This reading was an unpleasent surprise to analysts who expected bigger decline to 447k.
Treasury budget report showed a deficit of $135.9 billion in May compared to $82.7 billion in April. This reading was better than the expected deficit of $138.6 billion.