Mixed data from housing: the annualized number of housing starts drops by 0.3% to 1.164 million, slightly better than expected. On the other hand, building permits rise 0.7% to 1.138 milion against 1.15 million predicted.
The US dollar was on the back foot, following the big recovery of the pound. The housing data does not change the picture.
The pound recovered following the tragic murder of UK MP Jo Cox. This halted campaigning on both sides and is seen as a potential turning point in favor of Bremain. Better chances for the UK to stay in support the pound, the euro and risk in general. The losers are the yen and the US dollar.
In addition, James Bullard of the Saint Louis Fed sounded very dovish. He used to be quite bullish, certainly marked as a “hawk” within the ranks of the FOMC. However, he currently sees only one hike until 2018, even less than markets expect. He said that the economy may have slipped into a “low growth” mode.
Here is the EUR/USD chart.
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