EUR/USD returns to 1.1080 post-US CPI

EUR/USD eased further ground following US releases on Wednesday, currently testing the lower bound of the range near 1.1080.

EUR/USD lower on data, eyes on FOMC

The pair has faded the bullish attempt to the 1.1100 handle after US inflation figures have come in on a firmer note, showing the headline CPI up 1.0% on a year to February while the Core print rose at an annual pace of 2.3%, both prints surpassing estimates.

Data from the residential sector showed Housing Starts beating expectations during last month, while Building Permits missed consensus.

Next on tap will be February’s Industrial Production and Capacity Utilization, all ahead of the FOMC statement and Yellen’s press conference.

EUR/USD levels to watch

The pair is now down 0.23% at 1.1082 facing the next support at 1.1042 (200-day sma) ahead of 1.1025 (55-day sma) and finally 1.0820 (post-ECB low Mar.10). On the other hand, a breakout of 1.1218 (post-ECB high Mar.10) would target 1.1339 (high Fe.9) en route to 1.1379 (2016 high Feb.11).

Trade Federal Reserve interest rate decision - Live Coverage

Mar 16, 2016

United States Building Permits (MoM) came in at 1.167M, below expectations (1.2M) in February

US FOMC Preview: 17 major banks expectations

We are just a few hours away from the Fed's March policy meet decision. Global financial fraternity is going into the FOMC announcement without much expectations and possible chances of a lower Fed Funds ‘dot-plot’ is also expected. The following are the expectations as forecasted by the economists and researchers of 17 major banks along with some thoughts on the future course of Fed’s action. Surprisingly, all the 17 banks do not think that FOMC is ready to raise rates today even as the financial conditions have eased considerably over the last month, and incoming data have held up reasonably well with possible second hike coming only in June and beyond.