The euro moved up against the greenback breaking away its three day’s decline. Investors speculated a slowdown in the momentum of the US housing sector followed by a lower than expected US housing data. Nevertheless, the euro felt pressure against weaker inflation, adding stress on the ECB to prevent deflation.
EUR/USD moved up to 1.3851 at 08:55 GMT and later stabilized at 1.3834, making an increase of 0.14% for the day. Speculations are on for a support level of 1.3791 and a resistance of 1.3863. In the US, the housing moved up by 0.946 million units in March, which was lower than the expected level of 0.975 million. Moreover, the data showed 0.99 million building permits in March, which was below the expected levels of 1.015 million permits. It should be noted that it was 1.014 million in February.
While in the euro zone, the final inflation rate remained unchanged from the preliminary reading of March 31st, but the core inflation increased to a less than expected level.The ECB will decide on easing the monetary policy further, to bring back price stability and has expressed their willingness to consider new policy measures if required.
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