EUR/USD retraced back to 1.4200 level today after some very disappointing housing data came out in U.S. Overall situation continues to remain uncertain with the EUR/USD ranging between 1.4050 and 1.4250. It now formed a clear plateau pattern on the daily chart marking some major break in the Euro vs. Dollar struggle.
Housing report for September showed a further downfall in this economics sector with the decrease in both housing starts and building permits numbers exceeding pessimistic market forecasts. There were 1,191k housing starts (against 1,285k expected) and 1,226k new building permits (against 1,300k expected) this September.
Contrary to real estate sector bad news September CPI report showed a better than expected value — 0.3% against 0.2% expected, and that’s from the -0.1% in August.
Crude oil inventories report for the October 8–12 week showed a major increase in commercial oil inventories — 1.8 million barrels, which can easily compensate for the previous decrease by 1.67 million barrels.
