EUR/USD went lower today after the reports signaled that Europe’s economy continues to experience slowdown. The data from the US also showed some negative results. Housing starts and building permits decline last month. Export prices were also down. On the other hand, import prices increased, while industrial production and capacity utilization not only grew more than expected, but also received a positive revision of the previous readings.
Housing starts and building permits went down in July. Housing starts were at a seasonally adjusted annual rate of 604k, compared to the revised June estimate of 613k. Building permits were at a seasonally adjusted annual rate of 597k, compared to the revised June rate of 617k. Forecasts promised growth to 600k and 601k respectively. (Event A on the chart.)
Import prices increased 0.3% in July, after declining 0.6% in the previous month. Analysts predicted no change. Import prices fell 0.4% in July, following increase by 0.1% in June. That was the first decrease since July 2010. (Event A on the chart.)
Both industrial production and capacity utilization rose more than expected in July. Industrial production increased 0.9%, compared to the predicted increase of 0.5%, while capacity utilization rate advanced to 77.5%, compared to the forecast advance to 77.0%. Production rose 0.4% (revised from 0.2%) and utilization was at 76.9% (revised from 76.7%) in June. (Event B on the chart.)
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