EUR/USD extended its drop for the second session today as European Central Bank President Mario Draghi signaled that the monetary policy will remain accommodative to support the struggling economy of the European Union. The currency pair fell even as US GDP received a negative revision. Yet growth was still faster than in the previous period and the dollar remained strong.
US GDP expanded 1.8% in the first quarter of 2013, according to the third (final) estimate, slower than the preliminary figure of 2.4%. Still, the growth rate was faster than 0.4% in Q4 2012. (Event A on the chart.)
Crude oil inventories remained unchanged last week after rising by 0.3 million barrels in the previous week, while a drop by 1.9 million barrels was expected by analysts. The stockpiles are above the upper limit of the average range for this time of year. Total motor gasoline inventories increased by 3.7 million barrels and are well above the upper limit of the average range. (Event B on the chart.)
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