Growth of Euro Has Slowed

The euro has slowed its growth after the talk that the markets did not correctly understand yesterday's announcement of ECB President Mario Draghi and overreacted. In particular, the reactions were extremely sensitive to Draghi's comment that the threat of deflation has gone. The euro/dollar pair fell to the level of 1.1330.

The IMF lowered the forecast for the US growth in 2017 to 2.1%, compared with the April forecast of 2.3%. In 2018, the growth forecast was also reduced to 2.1%, compared with 2.5%. The IMF is not convinced that Donald Trump's policy could lead to a 3% growth in the US by 2020.

Wholesale inventories of the US increased by 0.3% in May against the expected 0.2%. Trade deficit narrowed slightly to USD -66.0b in May.