EUR/USD rose steadily today as the traders reacted to yet another currency intervention by the People’s Bank of China. Although the similar intervention resulted in a bearish move yesterday, traders began interpreting these currency market manipulations as a sign of danger to the upcoming US interest rate increase. The United States will be struggling to keep its currency competitive if China continues the devaluation policy.
Crude oil inventories fell by 1.7 million barrels in the United States during the last week. The decline followed a drop by 4.4 million barrels a week earlier and was lower than 2 million barrels fall forecasted. Total motor gasoline inventories decreased by 1.3 million barrels last week. (Event A on the chart.)
US Treasury budget report showed a $149.2 billion deficit in the month of July, a much bigger figure than $126.8 billion of the median forecast. June’s $51.8 billion surplus was also revised down to $50.5 billion. (Event B on the chart.)
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