The upward momentum of the EUR/USD currency pair has been short-lived, with the current exchange rate at 1.0530 as of October 19, 2023.
In recent days, the broader market sentiment has been influenced by risk aversion triggered by geopolitical complexities and deteriorating macroeconomic indicators. This has reignited a demand for the US dollar.
However, the economic statistics released recently offer limited significant insights. Notably, the final consumer price index in the Eurozone for September showed a year-on-year increase of 4.3%. While this is a positive development compared to August’s 5.2%, investors were already prepared for this improvement, as the preliminary calculations had indicated a similar outcome.
On the other side of the Atlantic, the US provided data on new building permits issued in September. The data revealed an increase to 1.47 million permits, surpassing expectations. Nevertheless, when compared to August figures, this increase seems somewhat modest. A probable contributing factor is the high cost of credit, which makes the approval of construction projects easier than securing the necessary funding for them.
Looking ahead, today’s US reports on the real estate sector will be closely monitored. Of particular interest is the data on sales in the secondary market, as a significant decrease in this area could be viewed as an unfavorable surprise.
The post EUR/USD Faces Potential Decline: Overview for October 19, 2023 appeared first at R Blog – RoboForex.