EUR/USD Continues Consilidation

Dollar continued to consolidate against the euro today despite the pro-recovery reports that were released today. It looks like the markets are still under a strong influence of the yesterday’s U.S. budget statement. EUR/USD is currently trading near 1.3967.
PPI rose by 1.8% in June, following 0.2% increase in May and the 0.8% gain forecast for June.
Retail sales increased by 0.6% in the month of June after rising by 0.5% in May. The market participants expected only 0.4% gain.
U.S. business inventories declined by 1.0% in May, following 1.3% drop in April and 0.8% forecast for May.
Yesterday, a monthly U.S. Treasury Budget report for June was released. It showed $94.3 billion deficit for June and the growth of the year-to-year deficit to $1,086.3 billion — the first time when the U.S. budget deficit crosses $1 trillion mark.

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