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EUR/USD Rises During Session Light on Economic Data

July 8, 2020 by

EUR/USD rose today. As there few macroeconomic reports to drive the currency pair, market analysts explained the rally by the positive market sentiment. Indeed, US tech stocks climbed and commodity currencies firmed together with commodity prices, suggesting that markets were in risk-on mode.

US crude oil inventories increased by 5.7 million barrels last week, surprising experts who were expecting a 3.2 million barrel drop. The stockpiles shrank by 7.2 million barrels the week before. Total motor gasoline inventories decreased by 4.8 million barrels. (Event A on the chart.)

Consumer credit fell by $18.2 billion in May after dropping by $70.2 billion in April. Analysts were expecting a smaller decrease of $15.2 billion. (Event B on the chart.)

On Monday, a couple of reports were released (not shown on the chart):

Markit services PMI rose to 47.9 in June from 37.5 in May according to the final estimate. That is compared with the median forecast of 47.0 and the preliminary reading of 46.7.

ISM services PMI climbed to 57.1% in June from 45.4% in May, above the forecast level of 50.0%. Being above the neutral 50.0% level of no change, the index suggests that the industry has returned to expansion.

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

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