EUR/USD Shoots to Upside as Traders Wait for Fed

EUR/USD jumped more than 1 percent today as traders were closing their long positions ahead of the next week’s Federal Reserve policy decision. Market analysts believe that the rally would be short-lived unless the Fed fails to deliver the long-anticipated interest rate hike.
Wholesale inventories were down 0.1% in October instead of rising 0.2% as was predicted by forecasters. The September’s increase was revised down from 0.5% to 0.2%. (Event A on the chart.)
Crude oil inventories dropped by 3.6 million last week, frustrating analysts who had predicted an increase by 0.7 million. The stockpiles grew by 1.2 million the week before. Meanwhile, total motor gasoline inventories increase by 0.8 million barrels. (Event B on the chart.)
On Monday, a report on consumer credit was released, showing an increase by $16.0 billion in October. It was smaller growth than the predicted $18.3 billion and the September’s $28.5 billion (revised down from $28.9 billion). (Not shown on the chart.)


If you have any comments on the recent EUR/USD action, please reply using the form below.