Euro Recovers on US Trade Balance, Threatened By Ireland

9:05 AM // 0 comments // Nak Pya Yam // Category: Euro
The euro rose today against the US dollar after yesterday’s decline as the US trade balance posted bigger deficit than was anticipated and the minutes of the Federal Open Market Committee showed that the US policymakers are divide on their opinion about necessity of the quantitative easing.

The euro rose today, following yesterday’s decline, as the deficit of the US trade balance widened from $43.6 billion in April to $50.2 billion in May, while a reading of $44.1 billion was expected. The FOMC minutes showed that its members have different approach to the futures of the US monetary policy:


On the one hand, a few members noted that, depending on how economic conditions evolve, the Committee might have to consider providing additional monetary policy stimulus, especially if economic growth remained too slow to meaningfully reduce the unemployment rate in the medium run. On the other hand, a few members viewed the increase in inflation risks as suggesting that economic conditions might well evolve in a way that would warrant the Committee taking steps to begin removing policy accommodation sooner than currently anticipated.