For the 24 hours to 23:00 GMT, the EUR rose 0.23% against the USD and closed at 1.1796.

Macroeconomic data showed that the Euro-zone’s seasonally adjusted construction output eased 0.2% on a monthly basis in August, following a revised flat reading in the prior month.

The US Dollar declined against a basket of major currencies, after the latest data suggested housing sector could act as a drag on the nation’s economic growth in the third quarter.

- advertisement -

Data indicated that housing starts declined to a one-year low in September, after it fell 4.7% on a monthly basis to an annual rate of 1127.0K, hurt by Hurricanes Harvey and Irma that disrupted the construction of single-family homes in the South. Housing starts had registered a revised reading of 1183.0K in the previous month, while markets were anticipating for a drop to a level of 1175.0K. Additionally, the nation’s building permits plunged 4.5% MoM to an annual rate of 1215.0K in September, while investors had envisaged for a fall to a level of 1245.0K and after registering a revised level of 1272.0K in the prior month.

Other economic data showed that the nation’s MBA mortgage applications rebounded 3.6% in the week ended 13 October 2017, after recording a drop of 2.1% in the prior week.

Separately, the Fed’s Beige Book report indicated that the pace of US economic growth was “split between modest-to-moderate range”, with some regions experiencing major disruptions from hurricanes. However, it revealed that wage growth remained stubbornly low despite “widespread” labour shortages and few indications of a pick-up in price pressures.

In the Asian session, at GMT0300, the pair is trading at 1.1797, with the EUR trading slightly higher against the USD from yesterday’s close.

The pair is expected to find support at 1.1746, and a fall through could take it to the next support level of 1.1694. The pair is expected to find its first resistance at 1.1833, and a rise through could take it to the next resistance level of 1.1868.

In absence of any macroeconomic releases in the Euro-zone today, investors will focus on the US initial jobless claims followed by leading indicators data for September, due to release later today.

The currency pair is trading below its 20 Hr and 50 Hr moving averages.


Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.