EUR/USD Halts Rally, Attempts to Recover

EUR/USD was rising at the beginning of today’s trading session but reversed its movement after data showed that the core components of the eurozone inflation gauge weakened. (Event A on the chart.) The currency pair attempts to recover and trades above the opening level as of now. Data from the United States was mostly positive and does not allow the euro to gain too much on the dollar.
Both housing starts and building permits increased in March. Housing starts were at the seasonally adjusted annual rate of 946k, below the predicted rate of 970k but above the February value of 920k. Building permits were at the seasonally adjusted annual rate of 990, in line with forecasts and near the February estimate of 1,014k. (Event B on the chart.)
Industrial production and capacity utilization rate also advanced last month. Production expanded 0.7% in March after rising 1.2% in February. The median analysts’ estimate was at 0.5%. Capacity utilization was grew from 78.8% to 79.2%, while specialists have expected it to stay unchanged. (Event C on the chart.)
Crude oil inventories swelled by 10.0 million barrels last week and are above the average range for this time of year. The increase was far above the projected 1.3 million and the previous week’s growth of 4.0 million. Total motor gasoline inventories decreased by 0.2 million barrels and are near the lower limit of the average range. (Event D on the chart.)

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