EUR/USD Rising on Unfavorable U.S. Data
EUR/USD rose today for a second day after EU leaders promised that budget cut won’t destroy the economy of the Euro-zone and on unfavorable changes in producer price index and building permits. The reports suggested that the economic recovery in the U.S. may be slower. The European policy maker explained that planned budget cuts should be only perfomed in most indebted countires, no in the whole region. EUR/USD trades currently at 1.2422
Producer Price Index (PPI) declined 0.1% in April, reversing its previous trend as it increased 0.7% in March. Also frustrating for analysts as they were expecting the increase by 0.7%.
Building permits were at a seasonally adjusted annual rate of 672k, above the revised March estimate of 635k, while analysts suggested that a value should remain at the same level. Housing starts in April were at a seasonally adjusted annual rate of 672k, above the revised March estimate of 635k and a forecasted growth to 660k.