Forex Trading US Business Inventories fell 0.7% versus 0.5% expected

Sales dropped 5.1%. The Inventory to Sales ratio rose to 1.41 months at the current sales pace. This is the highest since 2001 and is a worry. The Stockpiles have been well contained up until the last few months. However, now it appears that the sharp reversal has gotten businesses out of balance. If it continues, production will need to be slowed further resulting in slower growth and higher unemployment.
The news has moved the EURUSD back toward the lows from yesterday at the 1.3139 level.




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