The EUR/USD pair extended its weekly gains on Tuesday, surpassing the 1.0700 level mid-European session, as a better market mood subdues US Dollar de
mand. Stock markets trade with a better tone after seesawing at the beginning of the week, helped by firmer energy shares following higherData-wise, the calendar remains scarce, although the Euro Zone revised its August inflation figures. The Harmonized Index of Consumer Prices was confirmed at 5.3% YoY, but the core annual reading was downwardly revised to 5.2% from a preliminary estimate of 5.3%. The monthly core figure was reported at 0.5%, slightly below the 0.6% previously reported.
Meanwhile, the United States Federal Reserve’s decision looms. The American central bank is largely anticipated to maintain rates on hold and keep tracking the progress of previous decisions on inflation. Market participants will be looking for clues about future decisions and assessing odds for a final rate hike in November, currently at around 29%, according to the CME FedWatch Tool.
The US published August Building Permits and Housing Starts ahead of Wall Street’s opening, up 6.9% and down 11.3%, respectively. At the same time, Canada released its August , which resulted higher than anticipated. The news is giving the US Dollar an unexpected boost as markets turn risk-averse.From a technical point of view, EUR/USD ongoing advance seems corrective. The pair is up for a third consecutive day, yet still less than 100 pips above the multi-month low posted last week at 1.0631. The upside seems limited in the daily chart, as a firmly bearish 20 Simple Moving Average extends its slide below the longer ones, providing dynamic resistance at around 1.
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