EUR/USD Heads Down After Rebound
The EUR/USD dropped today after a speculation arose that a bailout are planned for Spain. This rumor was later dismissed, causing the euro to rebound, but now the European currency is heading down again. The data from the U.S. again showed mixed results. The industrial sector showed good performance, while a data from the housing markets was rather frustrating. EUR/USD trades now near 1.2304.
Building permits were at a seasonally adjusted annual rate of 574k in May, compared to 610k in April, frustrating analysts who forecast an increase to 630k. Housing starts slumped to 593k in May from a revised 659k in April, proving that forecasts were too optimistic to expect only small drop to 650k.
PPI moved down 0.3% in May, following a 0.1% decrease in April. The median forecast was 0.5% decline.
Industrial production and capacity utilization rose in May. Industrial production advanced 1.2 percent in May, compared to a forecasted figure of 0.9%, after having risen 0.7 percent in April. Capacity utilization rose to 74.7% from the previous reading of 73.7%, very close to forecasted value of 74.6%.
Crude oil inventories increased by 1.7 million barrels from the previous week. Total motor gasoline inventories decreased by 0.6 million barrels last week.