The Euro has continued falling against the Dollar during the American session with the pair extending decline from yesterday high at 1.5015 to reach lowest level since Nov 4 at 1.4807.
Currently the pair is trading around 1.48300/40, well within oversold territory, and reaching 0.90% daily losses from opening price action at 1.4968.
According to the FastBrokers research team, the EUR/USD is trading lower as investors await more data: “The EUR/USD is trading lower this morning as the S&P futures consolidate just above 1100. The EU is relatively quiet on the data front right now, making the EUR/USD’s present movements more reliant the Dollar’s reaction to upcoming economic data. Thus far we received slightly better than expected CPI and RPI data from Britain earlier in the session followed by weak PPI numbers from the U.S. The most disconcerting release was the -0.6% Core PPI reading (minus food and energy). The -0.6% decline is the largest in the Core number since November 2006. The setback in producer prices adds onto the sluggish EMI, Business Inventories, and Core Retail Sales data investors received yesterday. In other words, prices are declining while manufacturing slows and inventories rise, not to mention retail sales minus autos are weak as well. Hence, the Fed just received more evidence which may support its continued loose monetary policy stance. As a result, one would expect the Dollar to decline and the EUR/USD to benefit after such news. However, we will have to wait and see how the rest of today’s data pans out.”
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