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EUR/USD Attempts to Extend Rally, Fails

July 9, 2020 by

EUR/USD was attempting to extend yesterday’s rally at the start of today’s session but has failed and is now trading firmly below the opening level. Market analysts explained the dollar’s strength by the drop of US stocks which increased the safe-haven appeal of the greenback. As for US macroeconomic data, unemployment claims continued to fall, suggesting that the US economy is on the path of recovery from the crisis caused by the coronavirus pandemic.

Initial jobless claims were at 1,314k last week, seasonally adjusted, down from the previous week’s revised level of 1,413k (1,427k before the revision). The median forecast had promised a bigger figure of 1,357k. (Event A on the chart.)

Wholesale inventories fell by 1.2% in May, matching forecasts. The inventories were up 0.3% in the previous month. (Event B on the chart.)

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

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