17.08.201807:13 Forex Analysis & Reviews: Euro tries to start an upward correction

Despite the good data on the US economy, the European currency managed to restore its position against the US dollar, as large players managed to take advantage of the moment and record profits.

According to the report, labor productivity in the US grew in the second quarter of this year.

According to the US Department of Labor, labor productivity outside agriculture in the second quarter of 2018 increased by 2.9% per annum compared with the previous quarter. Compared to the same period in 2017, productivity in the second quarter increased only by 1.3%. Specific labor costs decreased by 0.9%.

Economists predicted a 2.4% annual growth in productivity compared to the previous quarter and an increase in labor costs by 0.1%.

Weak growth in industrial production may negatively affect the prospects for the recovery of the American economy. However, this trend can be traced in other countries, especially in the EU, which indicates the negative effect of trade wars.

According to the data, industrial production in the US in July this year compared with June increased by only 0.1%. The main reason for such a weak growth was the commodity sector. Economists had expected growth of 0.3%.

Strong demand in July this year forced the US company to increase inventories. According to the report of the Ministry of Trade, inventories increased by 0.1% compared with June, which fully coincided with the forecast of economists.

As for the technical picture of the pair, it underwent slight changes after yesterday's failed breakdown of the support level 1.1310. At the moment, buyers are trying to stay above 1.1365, and in case of a positive outcome, the demand for risky assets may remain, which will lead to the continuation of the upward correction and the renewal of the weekly high near 1.1430. In the case of a breakout of 1.1365, it is possible to "catch" the euro only at the week's lows in the area of 1.1310.

Quotes of oil continued to decline after data from the US Department of Energy.

According to the report, commercial oil reserves in the US increased by 6.8 million barrels, to 414.2 million barrels, from August 4 to 10. Analysts predicted a decline in inventories of 2.4 million barrels. Oil reserves in the Cushing terminal increased by 1.6 million barrels to 23.4 million barrels.

As for gasoline stocks, they fell by 740,000 barrels, to 233.1 million barrels, and distillate stocks rose by 3.6 million barrels, to 129 million barrels. The load of oil refining capacities was 98.1%.