Forex Blog

First-hand Forex trading experience and information about foreign exchange market that will be useful to traders

Archives

US Data Supports Fed Tightening Outlook

September 10, 2014 by

This week is relatively poor on economic reports from the United States, but those few that have been released were better than market participants expected, supporting the outlook for tighter monetary policy from the Federal Reserve in near future. Economists speculate that the US central bank will end its asset-purchase program in October and start raising interest rates in mid-2015. EUR/USD continued to sink.

Wholesale inventories grew 0.1% in July. The growth was slower than analysts anticipated (0.5%) and below the revised June’s increase of 0.2%. (Event A on the chart.)

US crude oil inventories decreased by 1.0 million barrels last week, matching forecasts exactly, but are still near the upper limit of the average range for this time of year. The stockpiles fell by 0.9 million last week. Total motor gasoline inventories increased by 2.4 million barrels last week but remained in the middle of the average range. (Event B on the chart.)

On Monday, a report on consumer credit was released, demonstrating an increase by $26.0 billion in July. The actual change was above the forecast figure of $17.4 billion and the June’s growth of $18.8 billion (revised positively from $17.3 billion). (Not shown on the chart.)

EUR/USD for 2014-09-10

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

Leave a Reply

required
required (will not be published)