EUR/USD Climbs After BoE, Trims Gains Later

EUR/USD climbed today after the Bank of England surprised markets, deciding to avoid monetary easing for now. (Event A on the chart.) The euro profited from the resulting surge of risk appetite. Currently, the currency pair is moving sideways after retreating closer to the opening level as the BoE also signaled about the possibility of an interest rate cut in August. Additionally, positive economic data from the United States was helping the dollar to keep ground versus the euro.
PPI rose 0.5% in June. That was a bigger increase than 0.3% predicted by analysts and the May’s 0.4%. (Event B on the chart.)
Initial jobless claims were at the seasonally adjusted level of 254k last week, unchanged from the week before, whereas experts had predicted an increase to 263k. (Event B on the chart.)
On Tuesday, a report on wholesale inventories was released, showing a rise by 0.1% in May, which was smaller than the predicted 0.2% and the April’s revised 0.7%. (Not shown on the chart.)
Yesterday, several reports were released. (Not shown on the chart.)
Import prices rose 0.2% in June, failing to meet market expectations of a 0.6% gain, after gaining 1.4% in May. Export prices advanced as well, rising 0.8% following the 1.2% rise in previous month.
Crude oil inventories fell 2.5 million barrels last week, in line with expectations of 2.3 million, after shrinking by 2.2 million the week before. Nevertheless, the stockpiles stayed near the record levels for this time of year. Total motor gasoline inventories rose by 1.2 million barrels.
Treasury budget logged a surplus of $6.3 billion in June. That is compared to the excess of $24.2 billion predicted by experts and the deficit of $52.5 billion registered in May.

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