EUR/USD Rises on Eurozone Industrial Production

EUR/USD advanced today as eurozone industrial production unexpectedly grew in April. (Event A on the chart.) The dollar fell even amid speculations that the US Federal Reserve will scale back its monetary stimulus program, which were weakening the dollar. The euro remained strong after Greece became the first developed country downgraded to the emerging economy status by MSCI.
US crude oil inventories increased by 2.5 million barrels last week (compared to the forecast drop of 1.4 million barrels) are above the upper limit of the average range for this time of year. The stockpiles declined by 6.3 million in the prior week. Total motor gasoline inventories increased by 2.7 million barrels and are also above the upper limit of the average range. (Event B on the chart.)
Treasury budget posted a deficit of $138.7 billion in May. The median forecast promised a drop by $110.2 billion. The budget demonstrated a surplus of $112.9 billion in April. (Event C on the chart.)
Yesterday, a report on wholesale inventories was released, showing an increase by 0.2% in April, somewhat smaller than the March’s 0.3%, but bigger than the forecast 0.1%. (Not shown on the chart.)

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