Forex News Preview: US Wholesale Inventories due out at 10:00 AM EDT

The final economic announcement due for release  will be the US Wholesale Inventories for the month of June. 

Last month wholesale inventories increased by 0.8%.  This was higher than expectation and was led by rising supply of computer equipment, metals and farm products.  Although higher, sales increased by 1.6% over the same period.  As a result, the level of Stockpiles currently available for sale declined to 1.08 months supply.  This is the lowest level on record and indicates that US manufacturers are prepared for a slowdown and have pared inventories accordingly. 

This month the expectation is for a more modest increase of 0.5%.   The market will be watching for the corresponding sales level and stockpile inventory.  A further erosion of stockpiles would be positive for manufacturers as they prepare for slack demand in the 2^nd half of the year.  Lower inventories will prevent unwanted discounting at unprofitable levels.