Valeria Bednarik, chief analyst at FXStreet explained that the EUR/USD pair extended its weekly decline down to 1.1158, and trades roughly 20 pips away from the level by the end of the US session, with the greenback higher against all of its major counterparts.
Key Quotes:
A strong slide in commodities, alongside with more FED’s officers pledging for a soon to come rate hike, were behind dollar’s strength. Federal Reserve Bank of St. Louis President James Bullard and Chicago FED President Charles Evans, said policy makers should consider raising interest rates at least a couple of times this year, inspiring confidence in the US economic situation.
In the US, New Home sales rose 2.0% in February to a 512,000 annual pace, while January figures were also revised higher, to 502,000 from previous 494,000. The figures indicate some continued growth in the sector, although sales levels are still 6.1% below a year ago.
Crude oil inventories jumped higher, with the EIA report showing a build of 9.37M against the 3.09M expected, pushing crude back towards the $ 40.00 a barrel region.
The pair has now declined for a fourth consecutive day, having trimmed half its FED’s inspired gains, and seems poised to extend its decline, given that short term selling interest is now surging on approaches to the 1.1200 level.”
(Market News Provided by FXstreet)