The euro appreciated vis-Ã -vis the U.S. dollar today as the single currency tested offers around the US$ 1.4435 level and was supported around the $1.4365 level. Technically, todayâ€™s intraday low was just below the 61.8% retracement of the move from $1.4015 to $1.4965. Traders await details of todayâ€™s Federal Reserve meeting wherein policymakers are discussing a plan to benefit the mortgage industry as a result of the fallout from this yearâ€™s sub-prime mess. Data released in the U.S. today saw November building permits fall 1.5% to an annualized 1.152 million units while November housing starts were down 3.7% to an annualized 1.187 million units, their lowest level in sixteen years. Last weekâ€™s relatively strong PPI and CPI data in the U.S. saw some Fed sentiment become less dovish yet many traders believe the FOMC will reduce the federal funds target rate by 25bps at the end of January. In eurozone news, the European Commission characterized the euroâ€™s recent rise as substantial and added economic growth is expected to decelerate in the next few quarters. Data released in the eurozone today saw the EMU-13 October trade surplus surge to â‚¬6.1 billion. Euro bids are cited around the US$ 1.4355 level.
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