The dollar was falling during every trading session this week so far and posted its fourth consecutive daily drop today as Russia stepped in to cool the tensions between the United States and Syria, proposing to oversee the usage of Syrian chemical weapons. Moreover, it looks like Syria is going to agree not to use such weapons at all. The news reduced fears on the Forex market, diminishing need for the dollar as a safe asset. Of course, persisting speculations that the Federal Reserve is going to tamper its quantitative easing program next week may yet support the US currency.
Wholesale inventories rose 0.1% in July after dropping 0.2% in June. The actual increase was a bit smaller than the expected 0.3%. (Event A on the chart.)
Crude oil inventories decreased by 0.2 million barrels (the analysts’ estimates were promising a 2.2 million drop) and are near the upper limit of the average range for this time of year. The stockpiles declined by 1.8 million in the previous week. Total motor gasoline inventories increased by 1.7 million barrels last week and are in the upper half of the average range. (Event B on the chart.)
On Monday, a report on consumer credit was released, showing an increase by $10.4 billion in July, which was somewhat below the predicted $12.7 billion. The June increase was revised negatively from $13.8 billion to $11.9 billion. (Not shown on the chart.)
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