The geopolitical situation continues to have a negative impact on the dollar, which failed to strengthen its position despite good statistical data. So, the number of issued construction permits increased by 2.5%, and the construction projects started by 1.9%. Against this background, the dollar made an attempt to grow, but the general negative sentiments led to the fact that it failed to consolidate the success. The data on industrial production was released, the growth rate of which slowed from 4.4% to 4.3%. However, the market was waiting for a slowdown to 4.0%, so the data turned out to be better than forecasts.
Today, the final inflation data is coming out in Europe, which should confirm the fact of its growth from 1.1% to 1.4%. Given the current situation, the market can respond positively to these data, even though investors have long considered them in price, as such results were demonstrated by a preliminary assessment. A constraining factor may be data on the construction sector, whose growth rate should slow from 3.7% to 2.3%.
Given that there are no serious reasons for the growth of the euro today, it can be assumed that the EUR/USD pair will remain in the region of 1.2375.
