EUR/USD retained its upward momentum, rising for the sixth straight trading session today. There were signs that US politicians may agree on a plan to postpone automatic budget cuts for two years. The dollar attempted to rally on the news, but was unsuccessful so far. This week is relatively poor on macroeconomic reports from the United States. Next week will be much more important as the Federal Reserve will conduct its monetary policy meeting.
US crude oil inventories decreased by 10.6 million barrels (much more than was predicted — 2.2 million) and total motor gasoline inventories increased by 6.7 million barrels last week. (Event A on the chart.)
Treasury budget deficit increased from $91.6 billion in October to $135.2 billion in November. It was still smaller than the predicted shortage of $142.6 billion. (Event B on the chart.)
Yesterday, a report on wholesale inventories was released, showing an increase by 1.4% in October, compared to predicted 0.3% and the 0.5% increase in September. (Not shown on the chart.)
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