EURUSD had one of the worst trading sessions in recent times.
The major currency pair dropped yesterday and remains rather weak today. the current quote for the instrument is 1.1340.
The “greenback” is still supported by the US 10-year bond yield, which continues increasing, and the global stock market decline. At the same time, the fact that the statistics from the US were rather weak didn’t surprise anyone.
The NAHB Housing Market Index dropped to 83 points in January after being 84 points in December. However, it wasn’t the worst news. An unpleasant surprise was that the Empire State Manufacturing Index plummeted to -0.7 points after being 31.9 points and against the expected reading of 25.0 points.
The components of the report showed declines in new orders (-5 vs 27.1 in December), shipments (1 vs 27.1). If it happens in New York, one may assume that the same may occur in the rest of the country. It means that market players may expect deterioration in business activity in general, and that will have a negative influence on industrial production and retail sales in the future.
Later today, investors will watch the real estate market: the US is scheduled to report on the Building Permits and the Housing Starts in December.
Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex bears no responsibility for trading results based on trading recommendations described in these analytical reviews.