The euro appreciated vis-Ã -vis the U.S. dollar today as the single currency tested offers around the $1.4725 level and was supported around the $1.4590 level. Technically, todayâ€™s intraday high was right around the 61.8% retracement of the move from $1.4965 to $1.4310. Data released in the U.S. today saw November new home sales fall 9% to an annualized rare of 647,000 units, the lowest sales rate since April 1995. Also, the Chicago PMI business index improved to 56.6 in December from 52.9 in November, far above expectations. The February fed funds futures contract is now predicting a 90% chance the Federal Open Market Committee will reduce the fed funds target rate by 25bps to 4.0% at the end of January. The contract is also pricing in a 45% chance the FOMC will reduce rates by 50bps. In eurozone news, German consumer prices were up 0.5% m/m and 2.8% y/y. Euro bids are cited around the US$ 1.4585 level.
Join the Discussion