- The Euro loses a notch against the Dollar, with an eye on the Fed's decision.
- Housing in the US is gaining ground, construction permits and housing starts are increasing.
- German ZEW and EU surveys beat expectations, lifting investor sentiment.
The Euro remains on the defensive against the US Dollar, as market participants await the monetary policy decision to be made on Wednesday by the Federal Open Market Committee (FOMC). Thus, the EUR/USD is trading at 1.0859 and loses 0.12%.
EUR/USD falls amid central bank moves and positive US housing data
Tuesday's session saw the decisions of two major central banks. The Bank of Japan (BoJ) abandoned negative interest rates, albeit with a moderate increase, weakening the Japanese yen (JPY) against most G8 currencies. The Reserve Bank of Australia (RBA) keeps rates unchanged at 4.35%, although it continues to consider the possibility of raising them if inflation accelerates.
Aside from this, Wall Street made decent gains as global bond yields decline. The US economic agenda showed that the real estate sector is gaining momentum. Construction permits in February grew by 1.9% month-on-month, going from 1,489 million to 1,496 million. At the same time, housing construction starts for the same period exceeded estimates of 8.2%, increasing 10.7%.
Meanwhile, the yield on the 10-year US Treasury bond falls two basis points, to 4.034%. The US Dollar Index (DXY), an indicator of the value of the Dollar against a basket of currencies, gained 0.23% and stands at 103.82 points.
On the Eurozone (EU) front, Germany released the March ZEW survey, which improved the country to 31.7, while the EU rose to 33.5, beating estimates.
EUR/USD Price Analysis: Technical Outlook
The EUR/USD daily chart suggests that the pair has a neutral to bearish bias, although dynamic support levels such as the 200, 100 and 50-day moving averages (DMA) limited the euro's losses, opening the door for a recovery . If buyers push the exchange rate above 1.0900, it could expose the March 13 high at 1.0964. followed by the year-to-date high at 1.0981. On the other hand, sellers need to push prices below the 200-DMA at 1.0838, so they could threaten to challenge 1.0800.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
