EUR/USD Rallies as U.S. Economy Might Trail Global Growth

EUR/USD currency pair extended its rally today for a third straight day as forecasts promise faster global economic growth, while the U.S. growth shows signs of slowdown. While the report about the jobless claims were a pleasant surprise, the non-manufacturing sector and the data about consumer credit showed a much worse numbers than was anticipated.
Initial jobless claims posted a surprisingly favorable reading, a decrease to 454k in the week ending July 3 from the previous week’s revised figure of 475k. Market participants expected a decline to only 461k.
U.S. crude oil inventories decreased by 5.0 million barrels from the previous week. Total motor gasoline inventories increased by 1.3 million barrels last week.
Today’s report on consumer credit showed very negative values, demonstrating a drop by $9.1 billion in May from April, following a decline by $14.9 billion from March to April (revised negatively from $1.0 billion increase). Median forecast was a decline by $1.9 billion.
On Tuesday, a report on ISM services index was released, showing a decline to 53.8% in June from 55.4% in May. Rather frustrating reading for traders, who expected only little drop to 55.1%.

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