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EUR/USD Unchanged on Mixed Fundamentals

March 18, 2008 by

EUR/USD remained mainly unchanged after today’s releases of the macroeconomic statistics in U.S. The overall trading day was bullish for the currency pair — it rose from 1.5715 to 1.5783, but it failed to set a new record high level today. The yesterday’s high value at 1.5902 remains the highest rate that EUR/USD ever reached on Forex.

Building permits in February fell down from 1,061k to 978k, while only a mild drawdown to 1,020k was expected. Housing starts during the same period dropped from 1,071k to 1,065k, which is significantly above the expectations — 995k. It’s noteworthy to say also that the housing starts fell only from a revised January’s value, before revision it was at 1,012k. This can be a first real sign of the U.S. housing market improvement.

Producer Price Index in February rose as expected — 0.3%, while the core PPI rose 0.5% — faster than expected 0.2%. In January they grew by 1.0% and 0.4% respectively.

Markets are waiting for the interest rate decision, which will be carried out later today. There may be a lot of movement on Forex after this release.

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