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EUR/USD Gets Support from Positive US Inflation Numbers

August 12, 2020 by

EUR/USD got strong support from the US CPI report after its early session’s uptrend had stalled. The currency pair didn’t react much to other fundamental reports from the United States today.

CPI increased by 0.6% in July on a seasonally adjusted basis, which exceeded the median forecast of a 0.3% increase, but was the same as in June. Core CPI (excluding food and energy) also increased by 0.6% in July. (Event A on the chart.)

Crude oil inventories decreased by 4.5 million barrels last week but remained well above the five-year average for this time of year. The decline exceeded the median forecast of 3.4 million barrels but was smaller than the drop by 7.4 million barrels registered a week earlier. Total motor gasoline inventories decreased by 0.7 million barrels during the same period. (Event B on the chart.)

Treasury budget deficit tightened to $63 billion in July — down from $864.1 billion reported in June. It was more than twice as good as the median forecast for July deficit had been — $138.3 billion. (Event C on the chart.)

EUR/USD as of 2020-08-12

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