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EUR/USD Up on Weak U.S. Construction Data

November 18, 2009 by

The EUR/USD currency pair remained bullish during most of today’s session paring previous losses from the beginning of the week, the interest rate outlook in the United States sees no hikes in the mid-term future, shunning away traders from dollar-priced assets. The construction industry provided frustrating numbers today on building permits and housing starts reports, adding pessimism to the already negative sentiment for the greenback. EUR/USD is currently trading at 1.4965.

Consumer Price Index (CPI) rose 0.3% in U.S. in October, more than in the previous month when it advanced 0.2% and higher than forecasts which also suggested a value of 0.2%.

Building permits were at seasonally adjusted annual rate of 552k in October, below the revised rate of 575k in September and frustrating forecasts that suggested a value of 590k. Housing starts had a seasonal decline to 529k in October from a revised value of 592k in the previous month, also below forecasts at 610k.

Crude oil inventories decreased by 0.9 million barrels from the previous week. Total motor gasoline inventories decreased by 1.7 million barrels for the same period.

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

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