EUR/USD fell today as the eurozone industrial production declined 0.7% in December, more than was predicted by analysts. (Event A on the chart.) The data added to speculations that the European Central Bank may consider an interest rate cut next month. Meanwhile, the US economic indicators were better than expected.
Crude oil inventories increased by 3.3 million barrels last week and are in the upper half of the average range for this time of year. This is compared to the forecast 2.5 million and the previous week’s increase of 0.4 million. Total motor gasoline inventories decreased by 1.9 million barrels, but are well above the upper limit of the average range. (Event B on the chart.)
Treasury budget balance demonstrated a deficit of $10.4 billion in January after showing a surplus of $53.2 billion in December. The projected deficit was $16.4 billion. (Event C on the chart.)
Yesterday, a report on wholesale inventories was released, showing an increase of 0.3% in December. Analysts have expected the same rate of increase as in the previous month — 0.5%. (Not shown on the chart.)
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