The EUR/USD Decline After Three Periods of Gains

The EUR/USD declined for the initial day in four in the course of Wednesday’s trading session. Forecasts for financial easing emerged over the euro, spreading the attraction of the currency to financiers. Most analysts don’t foresee for the European Central Bank take an action during tomorrow’s sessions, but remarks from the ECB officials may damage the euro all the same. At the same time, the dollar found backing from the positive housing report, which superseded yesterday’s negative announcement.

Existing home purchases increased to the daily revised annual estimate of 5.33 million in March from the downwardly adjusted 5.07 million in February. The median prediction edged at 5.29 million as a viable rate. (Event A on the chart.)

Crude oil supply increased by 2.1 million barrels the previous week, in alignment with analysts’ anticipation. The stockpiles increased by 6.6 million the week earlier. Total motor gasoline supply decreased just a fraction by 0.1 million barrels. (Event B on the chart.)

Yesterday, data on housing start and building permits was announced, indicating a decrease of the two indicators. Housing starts decreased to the regularly altered annual rate of 1.09 million in March from the February’s 1.19 million. Building permits decreased to the same ratio from 1.18 million in February. (Not indicated on the chart.)

The EUR USD Decline After Three Periods of Gains

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