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Forex: EUR/USD remains below 1.3100 after US housing

FXstreet.com (Barcelona) - The EUR/USD recovered most ground just ahead of the NY opening and NY empire state manufacturing index, reaching 1.3108, but disappointment spread across the market again and the pair has been trading mostly below 1.3100 since then. Currently at 1.3090 after the publication of US housing data by NAHB.

The housing market index by NAHB eased from 44 to 42 in April, disappointing market analysts that were expecting a rise to 45.

The NY empire state manufacturing index also disappointed, down from 9.74 to 3.05 in April, below 7.00 consensus.
Having come in at $25.7B in January, the February release of US net tic flows disappointed investors at $-17.8B. Market consensus was pointing to $41.3B. Total Net TIC flows eased from $116.8B (revised from $110.9B) to $53.6B.

The market priced in the disappointing release of China GDP data, easing from 7.9% to 7.7% (consensus of 8.0%) in Q1 (YoY), while QoQ data came in at 1.6% (consensus of 1.9%). Also, Chinese urban investment (down from 21.2% to 20.9% vs 21.3% consensus) and industrial production (down from 9.9% to 8.9% vs 10% consensus) in March didn’t help the mood, but China retail sales rose from 12.3% to 12.6%, against expectations of 12.5%.

“The EUR/USD currency pair is consolidating near its maximums. We think, today the price may break this consolidation channel downwards and continue falling down towards the level of 1.2940”, wrote Roboforex.com analyst Igor Sayadov, pointing to another ascending structure to reach the last week’s maximums later.

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