Better than expected US data yesterday failed to re-ignite the USD’s support. Even though Housing starts were worse than expected for January; Building permits and the Philly Fed Business outlook improved.
After peaking to 101.76 last Wednesday, the USD setback seen throughout yesterday brought the US Dollar Index (DXY) it to week’s lows of 100.41 and is currently at 100.46. The DXY measures the strength of the USD against a basket of currencies.
USD’s highs this week were attributed to Janet Yellen’s hawkishness in her presentation to the senate. The Fed Reserve Chair indicated improving US inflation and retail sales data and upcoming rate hikes.
EURUSD has been unable to take on the 1.0680 level and has found resistance ahead of it since yesterday’s US session. For the day, Tradertip is expecting more resistance at 1.0705:1.0711 if it makes it above current level of 1.0673. Following such resistance a correction down to below 1.0616 may be in the cards.
G20 Foreign Ministers Meeting continues today, we than have UK retail sales during the morning session and the US leading indicators later this afternoon. Today’s economic docket is relatively quiet.