EUR/USD was stable on Monday after halting decline and rising for the first time in four days on Friday. US economic data helped the currency pair to stabilize as macroeconomic indicators missed economists’ predictions.
Flash Markit services PMI fell from 54.6 in November to 53.4 in December instead of rising to 55.2 as analysts had predicted. (Event A on the chart.)
On Friday, a report on housing starts and building permits was released, showing a drop for both indicators. Housing start were down to the seasonally adjusted annual rate of 1.09 million in November from 1.34 million in October. Building permits fell to 1.20 million from 1.26 million. Both readings failed to meet traders’ expectations. (Not shown on the chart.)
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