Sharp Rise in EUR/USD as Oil Invenotires Drop

EUR/USD posted a big gain today, following a smaller rise shown yesterday, and is now trading just below Friday’s open level. The growth of euro against the U.S. dollar happened despite the poor fundamentals from Europe and other developed economies. United States aren’t very rich on the important Forex-influencing reports today — only crude oil inventories have got their release, but they managed to shake the market fully. EUR/USD is now trading near 1.4262.
Crude oil inventories went down by 8.4 million barrels, while the total motor gasoline inventories decreased by 2.1 million barrels, which is definitely going to hurt the USD, considering the higher oil prices.
Yesterday some other fundamental reports from U.S. were released. Among them the PPI change for July, which was -0.9%, following 1.8% gain in June. Forecasts were pointing at -0.3% change for July.
Housing starts and building permits report also came out yesterday. Building permits decreased from 570k to 560k in July, while housing starts declined from 587k to 581k annual rate during the same period. Both number were expected to go up slightly.

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