While the common currency continued trading lower against a supported Pound, the Euro was able to claw back losses against the US Dollar during North American trading as US existing home sales data disappointed expectations.
While economists had forecast that the value of existing home sales would fall from 4.87 million Pounds to 4.67 million Pounds in January it actually dropped to 4.62 million.
Existing home sales declined by 5.1 per cent in January, month-on-month, following a negatively revised gain of 0.8 per cent in December.
A decrease of 4.1 per cent in January had been forecast.
The result was the worst since 2012, but economist Robert Rosener stated; ‘It’s likely the weather played some role, but just as much of a role was played by lower inventories, higher mortgage rates, slightly higher prices and tighter credit. We’re on a positive trajectory, and when the spring comes we should see a bounce back.’
Further EUR/USD movement may occur in the hours ahead as Fed officials James Bullard and Richard Fisher prepare to speak about the US economy.
Although many investors are betting that the recent run of disappointing US data releases won’t prevent the Federal Reserve from ploughing on with its plan to gradually taper stimulus, the remarks issued by these two fairly vocal policy makers will be of interest.
Yesterday’s economic data for the Eurozone didn’t really impress, but next week the Euro may be supported if Germany’s final growth figures for the fourth quarter of 2013 confirm quarterly growth of 0.4 per cent.
The ‘Greenback’ may also come under pressure if next week’s reports show that US consumer confidence declined again in February, as expected by economists, and if durable goods orders in the world’s largest economy slide by 1.0 per cent following December’s 4.3 per cent drop.
Based on estimations for next week’s data, the EUR/USD exchange rate is forecast to have a neutral-positive outlook next week.
Euro (EUR) Exchange Rates
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Currency, ,Currency,Rate ,
Euro,,New Zealand Dollar,1.6581,