Rally of EUR/USD Continues

EUR/USD continued to rally today, rising more than 1 percent, as the traders’ mood was quite optimistic. Greece proposed to implement some austerity measures in exchange for the next tranche of a bailout, and now EU officials will review them while the Greek parliament should vote whether to accept such plans. The Chinese stock market continued to recover after the recent crash, adding to the traders’ optimism. Meanwhile, economic data from the United States was rather disappointing to the dollar bulls, pushing the US currency down against the euro.
Wholesale inventories expanded by 0.8% in May, exceeding the average analyst’ forecast of 0.3% and the previous month’s growth of 0.4%. (Event A on the chart.)
Yesterday, a report on initial jobless claims was released, showing an unexpected increase from 282k to 297k last week (seasonally adjusted) instead of the drop to 274k that was predicted by experts. (Not shown on the chart.)

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