EUR-USD Stable Despite Surge of Coronavirus Cases in Italy
EUR/USD was heading to end the session flat even though risk aversion persisted on markets after a sharp increase of confirmed coronavirus cases in Italy. The dollar was under pressure from expectations that the Federal Reserve will ease its monetary policy as the virus outbreak hurts the global economy. Positive US macroeconomic data did little to help the greenback.
New home sales were at a seasonally adjusted annual rate of 764k in January. That is compared with the forecast value of 714k and the previous month’s figure of 708k (revised up from 649k). (Event A on the chart.)
US crude oil inventories rose by 0.5 million barrels last week, almost the same as the week before, whereas analysts had predicted a much bigger increase of 2.3 million barrels. The stockpiles were below the five-year average for this time of year. Total motor gasoline inventories decreased by 2.7 million barrels but remained above the five-year average. (Event B on the chart.)