Forex - EUR/USD little changed after downbeat U.S. housing data
Investing.com
Published Sep 18, 2013 08:49AM ET
EUR/USD hit 1.3344 during European afternoon trade, the session low; the pair subsequently consolidated at 1.3349, easing 0.06%.
The pair was likely to find support at 1.3297, the low of September 15 and resistance at 1.3398, the high of August 28.
Official data showed that U.S. building permits fell by 3.8% to a seasonally adjusted annual rate of 918,000 units in August, from 954,000 the previous month. Analysts had expected building permits to fall by 0.4% to 950,000 units last month.
The report also showed that U.S. housing starts rose 0.9% to a seasonally adjusted 891,000 units last month, from a downwardly revised rate of 883,000 units in July, compared to expectations for a 3% increase to 917,000 units.
The data came as investors were eyeing the outcome of the Fed’s two-day policy meeting, due to conclude later Wednesday. The central bank was expected to announce plans to start tapering its USD85 billion-a-month asset purchase program.
A recent series of soft economic data raised doubts over how much the U.S. central bank will reduce its stimulus program.
The euro was lower against the pound with EUR/GBP shedding 0.44%, to hit 0.8361.
Also Wednesday, the minutes of the Bank of England's latest meeting showed that no policymakers believed more stimulus is necessary at present.
Policymakers voted unanimously in favor of keeping the benchmark interest rate on hold at 0.5% and the size of the bank’s asset purchase facility unchanged at GBP375 billion.
The minutes showed that policymakers believe the economic recovery in the U.K. is taking hold and outlined signs of a recovery in the euro zone.
The central bank also reiterated its forward guidance that it will not automatically raise interest rates when the U.K. unemployment rate falls below 7%.
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Written By: Investing.com
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