The USD remains weak. Overview for 19.04.2017

The main currency pair is ready to continue its growth in the middle of the week; the market is set against the USD.

On Wednesday morning, the EUR/USD pair is starting to strengthen slowly after rather contradictive Asian session. The current quote for the instrument is 1.0730 (+0.05%).

Chances are good that the main currency pair may continue moving upwards. And it is happening not because the market believed in the Euro and its promising future. Most likely, the market is set against the USD, and the pair will not reverse until some significant reasons appear.

Yesterday’s statistics from the USA showed that the Housing Starts decreased up to 1,220K against the expected reading of 1,250K. At the same time, the February number was revised from 1,300K to 1.290K. As a result, on YoY the indicator lost 6.8%. The Single-family Housing Starts, which is the largest segment of the market, shrank most of all.

Even other reports couldn’t beat this numbers. For instance, the Building Permits added 3.6% m/m in March. However, investors get the idea: to get a building permit doesn’t mean to start building at once. The inflation growth at the time when salaries are increasing very insignificantly slows down spending in the construction sector.

There will be few reports from the USA today, so the market’s attention will be focused on the final March inflation report from the Eurozone. If the indicator turns out to be strong, the Euro will get another reason to continue growing.

RoboForex Analytical Department