EUR/USD Bounces from Daily Low, Logs Small Gain

EUR/USD was falling during the first half of the Wednesday’s trading session, but reversed its movement later and settled with a gain, albeit a small one. The worse-than-expected housing data released in the United States during the session probably contributed to the bounce of the currency pair.
Housing starts were at the seasonally adjusted annual rate of 1.13 million in September, while analysts had expected the same 1.18 million rate as in August. Building permits were at the seasonally adjusted annual rate of 1.22 million, which was below the average forecast of 1.25 million. Moreover, the August reading was revised from 1.30 million to 1.27 million. (Event A on the chart.)
US crude oil inventories dropped by 5.7 million barrels last week, though still remained near the upper limit of the average range for this time of year. The drop was bigger than 4.7 million predicted by analysts and 2.7 million registered during the prior week. Total motor gasoline inventories, on the other hand, increased by 0.9 million barrels last week. (Event B on the chart.)

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