On Thursday morning, the main currency pair updated July’s lows; investors are buying their sales back, but the situation remains uneasy.
The EUR/USD pair is slowly recovering on Thursday afternoon after having been sold in the morning. The current quote for the instrument is 1.0976. This morning, the pair reached July’s “bottom” at 1.0950. The next target is at this year’s low at 1.0911. In case there are necessary drivers, bears, who are still very strong, may reach it rather soon.
Yesterday, the USA published quite complicated statistics. In September, Housing Starts reduced by -9.0% y/y, the number was 1.047 million. However, Building Permits increased by 6.3% y/y, 1.225 million.
In the components of the report, we can see that real estate developer interests are changing: fewer multi-family houses and more single-family ones. Of course, the demand for the latter ones is positive, but if taken as a whole – it’s still minor.
All this could count against the USD, save the comments of monetary authorities. Yesterday, the Fed representative, Mr. Dudley, emphasized that he waited for the rate increase “later this year”, but at the same time, he didn’t see reasons for tightening monetary policy aggressively or urgently.
So, right now one can see a technical rebound in the EUR/USD pair, but it’s unlikely to last long.
RoboForex Analytical Department
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