The US Dollar was bearish against most of its major pairs on Wednesday with the exception of the CHF and EUR. On the US economic data front, the Mortgage Bankers Association’s Mortgage Applications declined 2.5% for the week ending September 11th, compared to +2.9% in the prior week. Retail Sales Advance rose 0.6% on month in August (+1.0% expected), compared to a revised +0.9% in July. Finally, the Federal Reserve decided to keep the Federal Funds Rate at 0.00% to 0.25%, as expected.

On Thursday, Housing Starts for August are expected to slip to 1,483K on month, from 1,496K in July. Initial Jobless Claims for the week ending September 12th are expected to decline to 850K, from 884K in the week before. Finally, Continuing Claims for the week ending September 5th are expected to fall to 13,000K, from 13,385K in the previous week.

The Euro was under pressure against all of its major pairs dropping 47 pips to 1.18 against the USD. In Europe, the European Commission has posted July trade balance at 20.3 billion euros surplus (vs 19.3 billion euros surplus expected). The U.K. Office for National Statistics has released August CPI at -0.4% on month (vs -0.6% expected). PPI were released at +0.0%, vs +0.2% expected. Moreover, OECD raised its 2020 Global economy forecast to -4.5% (vs -6.0% previously). U.S. GDP is expected at -3.8% (vs -7.3% previously) and Eurozone GDP is raised by 1.2% point to -7.9% (vs -9.1% previously).

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Looking at the EUR/USD chart, the pair remains in a consolidation between 1.2015 and 1.1695. The preference is for a breakout above 1.2015 resistance to continue the prior uptrend however a break below 1.1695 could pressure the pair below its 50-day moving average down towards 1.15.

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