EURUSD: The fall of the euro may slow down after inflation data, but the short-term trend is on the side of sellers

The US dollar continued to strengthen against the euro and a number of other world currencies on Thursday after the release of good fundamental statistics, indicating the growth of the economy.

According to the data, the indicator for the construction of new homes in the US rose in April. The growth is directly related to the increase in the construction of single-family homes.

The report of the Ministry of Commerce said that the number of bookmarks of new homes in April 2019 increased by 5.7% compared with the previous month and amounted to 1.235 million homes per year. There was also an increase in the number of construction permits, which increased by 0.6% compared to March to 1.296 million homes per year. Economists had expected a 5.4% increase in new home bookmarks.

Data on the labor market, though weekly, but still pleased traders.

The report of the US Department of Labor indicated that the number of initial claims for unemployment benefits for the week from May 5 to 11 was 212,000, while economists had expected that the number of applications would be 220,000.

As for the number of secondary applications, it decreased by 28,000 to 1,660,000 in the week of April 28 to May 4.

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Production activity in the area of responsibility of the Philadelphia Fed grew in May, which is also a good sign for the economy. According to the data, the Fed's business activity index-Philadelphia rose in May 2019 to 16.6 points from 8.5 points in April. The main growth was due to the supply and employment index.

The speech of the President of the Federal Reserve Bank of Minneapolis, Neel Kashkari, who does not have the right to vote on the board of the Fed, was ignored by the market. Kashkari said that monetary policy was too tight during the recovery of the US economy, so the Fed did not manage to achieve a symmetric level of inflation. In his opinion, the committee should consider lowering rates to further stimulate economic growth.

As for the technical picture of the EURUSD pair, the direction at the end of the week will depend on the data on inflation in the eurozone, the output of which is expected today in the morning. To save the bearish impulse, a return to the support level of 1.1170 is required, which will push the trading instrument even lower to the area of 1.1150 and 1.1100 lows. Considering the bullish scenario, a return and consolidation above the resistance of 1.1190 is required, which will push the euro to the highs of 1.1210 and 1.1240.

The material has been provided by InstaForex Company - www.instaforex.com