The EUR/USD currency pair was influenced mostly by the news outside of the United States. The initial downmove was caused by the Peopleâs Bank of China — it has devalued the yuan by 1.9%, sending market participants to seek safety in such currencies as the US dollar (event A on the chart.) Six hours later, news came out of Greece announcing a bailout deal between the country’s government, the European financial organizations, and the IMF (event B on the chart.)
Nonfrarm productivity increased by 1.3% in the second quarter of 2015 according to the preliminary report. It was expected to rise by 1.5% by traders. The growth followed 1.1% decline (revised from 3.1% fall) in the first quarter of the year. Higher productivity usually implies lower inflation and thus lower interest rates. (Event C on the chart.)
Wholesale inventories rose by 0.9% in June after gaining 0.6% in May (revised negatively from 0.8%). The forecast was 0.5% growth. (Event D on the chart.)
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