Excon Fuji Securities saw the EUR/USD price activity picked up today with the pair trading between 1.3303 and 1.3385 gaining 0.0054 or 0.42%.
As per the Speculative Sentiment Index (SSI) for the EUR/USD, the reading is currently -1.89 compared to -2.4 last week. Despite this significantly negative number, the current price action may suggest a change in market conditions in the near future.
The euro gained ground against the dollar in the last week and managed to close above 1.3500, while ended the yesterday’s trades below this crucial near-term support.
Euro gains were boosted by better-than-expected economic data after the ZEW index rose to 21.5 in April, well above the expected reading of 14.0.
Markets sentiments improved in the last few days buoyed by the on-going rebound in oil prices and the latest positive economic data coming from China, tempering concerns towards a global economic slowdown.
On Tuesday morning, the U.S. Census Bureau reported that building permits declined 7.7% to 1.086 million, extending losses of 2.2% over February. Meanwhile, housing starts dropped drastically by 8.8% last month to 1.089 million, well below analysts' expectations of a rise to 1.167 million.
Due to these disappointing readings, the U.S. Dollar Index lost more than 0.50% to reach 93.89, before rebounding to hit 94.07. The USD pushed lower ahead of Wall Street opening dropping more than predicted in March.
On the other hand, the GBP/USD pair traded at fresh monthly highs, and is expected to continue climbing to break above 1.5405. The GBP price also ticked higher due to the high-yielders demand.
