The USD could benefit from strong data from the U.S. economy and grew strongly today. The figures from the United Kingdom, however, were disappointing and fell short of expectations.
USD against the EUR at its highest level since November 2013
While the euro zone economy currently is not convincing, and the location is also impacted by the crisis in the Ukraine, the figures released today for U.S. economy could convince the investors. The trust is driven primarily by strong numbers from the construction industry, as these are an important indicator for a positive development of the economy. The number of building permits rose last month by a whopping 8.1%, compared to 2.5% forecast. The positive influence of these figures could not be clouded by the values of the consumer price index, although in value of 1,9% of the forecasts reached, in the last month but behind the lean predicted values from 0.2% to 0.1% also remained.
The USD could gain ground in all pairs. The pair EUR/USD is currently at 1.3320, a decline of 0.33%, the pair USD/JPY is at 102.87, an increase of 0.29% against the GBP the USD currently 0.69%, more to this below.
UK figures are disappointing for investors
After the GBP had opens up the trading week on a positive note, investor confidence with today's data from the United Kingdom were shaken badly. Overall the numbers were negative on aggregate, but especially the bad values to producer and consumer prices probably led to a sharp loss of confidence among investors. The CPI (month) fell -1.6%, below the expected 1.1% return, and consumer prices also could not reach the expected rate of 1.8% and 1.6% were published.
The GBP showed strong losses after the publication, in all pairs. The EUR was recorded against the GBP currently with an increase of 0.31% and the USD with 0.67%.