The euro rallied against the dollar today for a second day as stock markets stabilized, easing tension caused by the state of the global economy. The rally caused controversy among economists as some claim that this rally will end soon and the euro will fall to 1.24 per dollar, while others predict that the euro will rise to 1.32 per dollar. Today’s report from the US hadn’t provided much information to support either side. EUR/USD trades near 1.2902 now.
Building permits were at seasonally adjusted annual rate of 565k in July, below the revised rate of 583k in June and frustrating forecasts that suggested a value to stay at the same level. Building permits in July were at a seasonally adjusted annual rate of 546k, higher than the revised June reading of 537k but still below the expected value of 570k.
PPI rose 0.2% in July, exactly as analysts expected. This advance followed a decline by 0.5% in
June.
Industrial production and capacity utilization rate grew in July. As industrial production rose 1.0% from a previous revised reading of a 0.1% decline in June, utilization rate was at 74.1% from a previous revised reading of 71.6%. Forecasts expected industrial production to increase by 0.5% and were near actual figure for the capacity utilization rate, promising a value of 74.6%.
If you have any comments on the recent EUR/USD action, please, reply using the form below.
