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EUR/USD Flat After US CPI Matches Forecasts

February 10, 2021 by

EUR/USD was attempting to rise during Wednesday’s trading session but has retreated to settle flat. Markets were focusing their attention on the US inflation report, which came out in line with expectations.

CPI rose by 0.3% in January, matching market expectations, following a 0.4% in December. Core CPI was flat, missing expectations of a 0.2% increase, after rising by 0.1% in the previous month. (Event A on the chart.)

Wholesale inventories increased by 0.3% in December. Experts had predicted the same 0.1% increase as in the previous month. (Event B on the chart.)

US crude oil inventories sank by 6.6 million barrels last week, though were 2% above the five-year average. That was a far bigger drop than 0.9 million barrels predicted by analysts. The week before, the stockpiles fell by 1.0 million barrels. Total motor gasoline inventories rose 4.3 million barrels and were 0% below the five-year average. (Event C on the chart.)

Treasury budget deficit widened to $162.8 billion in January up from $143.6 billion in December. That is compared with the median forecast of a $152.4 billion deficit. (Event D on the chart.)

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

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