EUR/USD gained today as US Treasury yields paused a rally. Additionally, the German-Italian bond spread narrowed, signaling that concerns about the Italian budget eased a bit. Now, traders wait for tomorrow’s US Consumer Price Index report.
PPI rose 0.2% in September on a seasonally adjusted basis, matching analysts’ forecasts exactly. The index declined 0.1% in August. (Event A on the chart.)
Wholesale inventories rose 1.0% in August from July following the 0.6% increase in the previous month. Analysts had expected a smaller increase by 0.8%. (Event B on the chart.)
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Posted on Forex blog.