EUR/USD (current price: 1.0457)
U.S. Housing Starts and Building Permits both missed expectations with readings of annualized 1.2 million and 1.09 million units respectively. The US real estate market might be hit hard by rising yields in the coming months. The sector has been benefiting from the low yields in recent years, as mortgage rates were historically low. The common currency bounced back against the Dollar following the sharp decline of the previous days.
Our assessment: EUR/USD is trading in a long-term downtrend after breaking below 1.0475. Support is now found near 1.0250 and at parity.
