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EUR/USD Declines Without Much Regard for Fundamentals

July 19, 2016 by

The US dollar is strengthening against the euro for the most part of the day today, without paying attention to reports released in the eurozone or the United States. The general market sentiment is skewed into risk-aversion as traders and investors remain worried about the Brexit.

Housing starts rose from the seasonally adjusted annual rate of 1.135 million units to 1.189 million units in June. A growth to 1.165 million was expected. Building permits increased from 1.136 million units to 1.153 million during the same period — a bit higher than 1.150 million forecast. (Event A on the chart.)

Yesterday, a report on the net foreign purchases of the US long-term securities has shown a positive flow of $41.1 billion for May — above the median forecast value of $31.6 billion. April’s net sale was revised from $78.1 billion to $67.4 billion. (Not shown on the chart.)

EUR/USD as of 2016-07-19

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

2 Responses to “EUR/USD Declines Without Much Regard for Fundamentals”

  1. Trader James

    Can we see the impact of brexit in this pair? How can we define the impact?

    Reply

    Andriy Moraru Reply:

    Of course, we cannot be 100% sure that this or that movement in the recent days is due to the market’s poor sentiment induced by Brexit. However, we may assume that if the currency pair is going down without other apparent reasons except for the whole cohort of news related to the UK leaving the EU, it does so due to the impact of Brexit.

    Reply

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