The EUR/USD declined intensively today as risk aversion remained high favoring the U.S. dollar as Chinese equities markets dropped on the country’s new lending restrictions. The euro continues to suffer from a negative sentiment fueled by concerns regarding the growing Greek budget deficit, and as data published in the U.S. came within forecasts with a slightly positive outcome, the dollar reached the highest rate versus the European single currency in 2010. EUR/USD continues to fall currently at 1.4139.
Building permits were at seasonally adjusted annual rate of 653k in December, showing figures above forecasts that expected 590k permits approved and from a previous reading of 589k (revised) in November. Building permits for December were at a seasonally adjusted level of 557k from a previous revised rate of 580k in November. Forecasts expected housing starts to be at 580k.
Producer Price Index (PPI) had a timid increase of 0.2% in December from a previous advance of 1.8% in November. The actual figures expected no changes for this index.
Net long-term purchases of the U.S. securities by the foreign investors published yesterday were at $126.8 billion in November from a previous revised reading of $19.3 billion. Data came much above forecasts that expected just $30.3 billion.
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