Dollar Retreats vs. Euro, Doesn’t Fall Far

EUR/USD bounced today following yesterday’s drop to a new multi-year low. The dollar’s decline was not big, and the US currency regained some of its strength after unemployment claims fell unexpectedly.
Initial jobless claims fell from 289k to 280k last week, a nice surprise for those dollar bulls who have counted on an increase to 291k. (Event A on the chart.)
Crude oil inventories swelled by 7.3 million barrels last week and are well above the upper limit of the average range for this time of year. Total motor gasoline inventories increased by 4.1 million barrels and are well above the upper limit of the average range. (Event B on the chart.)

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