Forecast: How will U.S. building permits data impact EUR/USD?

ForexNewsNow | Published on August 17, 2010 at 1:00 am

NEW YORK (Forex News Now) – The Census Bureau is due on Tuesday to release key data on number of new U.S. building projects authorized for construction in June, in one of the day’s spotlight FX news events.

The report is expected to show that the number of permits issued held steady at 0.58 million, two global forex news outlets reported.

The bureau is scheduled to release the report at 12:30 P.M., GMT; as such, the data is likely to dominate European afternoon currency trading. However, it may be overshadowed by a Labor Department report on U.S. producer price inflation, which is due to be released at the same time.

Given the current FX info, a decrease in building permits could lift EUR/USD toward resistance around last Thursday’s high, 1.2932.

Should the data show an increase, however, the currency pair could be pushed down toward support around the low of July 21, 1.2732.

Of course, a rise in permits could also boost FX traders’ risk appetite, which would be likely to strengthen the euro against the greenback.

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