For the 24 hours to 23:00 GMT, the EUR rose 0.14% against the USD and closed at 1.1227, amid upbeat inflation data in the Eurozone.
On the data front, Eurozone’s consumer price index (CPI) rose 0.2% on a monthly basis in June, surpassing market expectations for a rise of 0.1%. In the previous month, the CPI had registered a rise of 0.1%. Meanwhile, the region’s seasonally adjusted construction output eased for the third straight month by 0.3% on a monthly basis in May, following a revised drop of 1.7% in the previous month.
In the US, data indicated that the housing starts declined 0.9% on a monthly basis to an annual rate of 1253.0K in June, falling for the second consecutive month and more than market expectations for a drop to a level of 1260.0K. In the prior month, the housing starts recorded revised reading of 1265.0K in the previous month. Additionally, the nation’s building permits unexpectedly fell to a 2-year low level of 6.1% on monthly basis, to an annual rate of 1220.0K in June, defying market anticipation for a rise to a level of 1300.0K. The building permit had registered a revised reading of 1299.0K in the prior month. Also, the MBA mortgage applications dropped 1.1% on a weekly basis in the week ended 12 July 2019, following a drop of 2.4% in the previous week.
The Federal Reserve’s (Fed) latest Beige Book revealed that the most districts witnessed a modest expansion from mid-May through early June and expects further moderate growth in coming months. However, it also raised concerns over the ongoing trade uncertainties that would adversely affect the current stable inflation growth and mildly improving employment data.
Moreover, the report signalled that the Federal Reserve might slash interest rates later this month.
In the Asian session, at GMT0300, the pair is trading at 1.1238, with the EUR trading 0.10% higher against the USD from yesterday’s close.
The pair is expected to find support at 1.1212, and a fall through could take it to the next support level of 1.1185. The pair is expected to find its first resistance at 1.1253, and a rise through could take it to the next resistance level of 1.1267.
Amid lack of macroeconomic releases in the Euro-zone today, traders would keep an eye on the US Philadelphia Fed business outlook for July and the leading index for June along with initial jobless claims, all set to release later in the day.
The currency pair is trading above its 20 Hr and 50 Hr moving averages.
