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EUR/USD Bounces Ahead of ECB Meeting

March 9, 2016 by

EUR/USD was falling during the current trading session but rebounded as of now. Tomorrow, the European Central Bank will hold a monetary policy meeting, and it is widely expected that the ECB is going to expand its monetary stimulus.

US wholesale inventories increased 0.3% in January instead of falling 0.2% as analysts’ had predicted. Furthermore, the December’s change was revised from -0.1% to 0.0%. The rise of inventories means slowdown of economic activity as companies are less likely to purchase goods unless their stockpiles are depleted. (Event A on the chart.)

Crude oil inventories expanded by 3.9 million barrels last week, a bit more than had been predicted (3.0 million) but far less than in the week before (10.4 million). Still, the stockpiles were at the historically high level for this time of year. Total motor gasoline inventories dropped 4.5 million barrels last week but remained well above the upper limit of the average range. (Event B on the chart.)

On Monday, a report on consumer credit was released, showing an increase by $10.5 billion in January. The increase was smaller than the predicted $18.6 billion and the December’s $21.4 billion. (Not shown on the chart.)

EUR/USD as of 2016-03-09

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