US CPI Makes EUR/USD Extend Decline

EUR/USD extended its decline today as US consumer prices rose last month unexpectedly. Speculations about potential expansion of quantitative easing from the European Central Bank also continued to hurt the currency pair.
US CPI rose 0.1% in September (seasonally adjusted), while most analysts expected no change. The index was down 0.2% in the preceding month. Core CPI also rose 0.1%. (Event A on the chart.)
Crude oil inventories increased by 7.1 million barrels last week and are near the upper limit of the average range for this time of year. The increase was below the previous week’s value of 8.9 million but far above the predicted figure of 2.8 million. Total motor gasoline inventories decreased by 1.3 million barrels and are in the lower half of the average range. (Event B on the chart.)

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