Home / Forex & Currency Exchange News / EUR/USD Declines for Third Day as Markets Prepare for Fed Hike

EUR/USD Declines for Third Day as Markets Prepare for Fed Hike

EUR/USD fell for the third day in a row despite turmoil in the US government. The dollar got some support from today’s macroeconomic reports, which were good for the most part, with the exception of the housing data. But the most important reason for the greenback’s rally was anticipation of an interest rate hike from the Federal Reserve next week.

Housing starts and building permits fell in February. Housing starts were at the seasonally adjusted annual rate of 1.24 million versus 1.29 million predicted by analysts and 1.33 million registered in the previous month. Building permits were at the seasonally adjusted annual rate of 1.30 million, compared to the average forecast of 1.32 million and 1.38 million logged in January. (Event A on the chart.)

On the other hand, industrial production and capacity utilization increased in February. Industrial production climbed 1.1% following the 0.3% decline in January. Analysts had expected an increase by just 0.3%. Capacity utilization rose from 77.4% to 78.1%, beating market expectations of 77.7%. (Event B on the chart.)

Michigan Sentiment Index advanced from 99.7 in February to 102.0 in March according the preliminary estimate. That was totally opposite to the decline to 99.2 predicted by experts. (Event C on the chart.)

If you have any comments on the recent EUR/USD action, please reply using the form below.

Posted on Forex blog. Click Here For Original Source Of The Article

About Louie Lewis

Louie Lewis
Successful forex trading starts with you first. Then comes the actual strategies and techniques. I have been involved with forex and forex trading for a few years now. It is a wonderful way to build wealth. The learning never stops and I want to help others along their journey into this wonderful market of opportunity.

Check Also

“Oops, They Did It Again”

“Oops, They Did It Again”

See “a classic capitulation to a rising trend” By Elliott Wave International History often repeats. So, one way to make an educated guess about the future is to look at the past. With that in mind, let me share with you a valuable observation from our market analysts: Overseas investors tend to jump into U.S. […]

Leave a Reply

Your email address will not be published. Required fields are marked *