US dollar got a massive impulse
US Real Estate statistics published recently was much better than expected (468000 against predicted result of 400000), what is more, the result is much better than the previous one of 427000. Monthly increase equals to 9,6% against predicted 1,0%. This data inspired investors and looks like weak Winter statistics was a misunderstanding due to cold Winter.
Traders no longer hesitate that Federal Reserve will continue to reduce incentives and general economic improvement most likely will make Federal Reserve increase refinance rate earlier than expected.
EURUSD is being under pressure at the moment not only due to good US Real Estate statistics but also from the expectations that ECB might go for new economic stimulus. Latest weak statistics from France, Spain, Italy and also quite not impressing from Germany might make ECB to go for it and that might have a negative effect on EUR in the short-term.
Semen Kamensky