USD Lost Some Strength After Housing Data

The U.S. released its PPI for the month of July coming in twice the expectations at 1.2% while the prior reading was 1.8% further supporting that the Feds just may hike rates in order to battle inflation. As for housing starts it plunged marking a 17-year low further showing that the U.S. is unstable yet the dollar remains stable in the markets gaining on the back of weak currencies.

The euro is trading between the resistance of 1.4715 and the support of 1.4600 at 1.4681. The EUR/USD recorded a high of 1.4707 and a low of 1.4630. The European economy is further pressuring the single currency into misery as it continues to fall while the momentum indicators on the four hour chart are providing us with an upside direction just waiting for fundamental news that will help the euro approach the resistance stated.

Looking at the pound, following the euro's lead is also weak in the markets against the greenback as the housing prices in the UK economy continues to slide. The GBP/USD is trading between the support of 1.8505 and the resistance of 1.8675 at 1.8613. It is pretty clear that the royal currency remains oversold and has been for the past couple of days as investors are aware for the outlook of the British economy. The pair recorded a high of 1.8662 and a low of 1.8536

Investors are currently risk aversion as they fear the high yielding assets by selling them and buying the low yielding assets like the yen in which we call unwinding of carry trades. The USD/JPY is currently trading at 109.80 while recording a high of 110.32 and a low of 109.65.

Crown Forex

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