EUR/USD: Modest Dip as Trade Posts Continued Improvement

The US trade gap fell to its lowest level since before Hurricane Katrina helped push up oil prices. The deficit fell to $58.25, its third drop in a row. This should help push up Q4 GDP forecasts a bit. Options-related buying is seen in the 1.2950 region this morning, both to protect options and linked to large 1.3000 vanilla expiries this morning. EUR/USD trades at 1.2972.