EUR/USD (current price: 1.0900)
The Euro traded as high as 1.0950 yesterday before sinking back to the 1.09 level in late trading, despite the mixed economic reports coming out from the U.S., as the European releases were mostly negative. The German GFK Consumer Climate Index was lower than expected in September with a reading of 9.7 while German Import Prices grew by 0.1%, in line with expectations. Italian Retail Sales unexpectedly declined by -0.1%, as U.S. New Home Sales also disappointed with a number of 593,000.
Our assessment: The cross is still trading in a short-term downtrend with the January lows near 1.08 providing support for the coming weeks, as resistance looms around the 1.10 level.
