Euro falls to two-week low against dollar after Powell's testimony

Euro fell in American trade to July 2 lows against the dollar, following earlier data from the euro zone and the US, while Federal Reserve Chair Jerome Powell wrapped up the second half of his Congressional testimony today, where he reiterated his belief in the strong performance on US economy. 

As of 05:08 GMT, EUR/USD shed 0.05% to 1.1655 from the opening of 1.1661, with an intraday high at 1.1665, and a two-week low at 1.1602. 

Earlier euro zone data showed consumer prices rose 0.1% as expected, slowing down from 0.5% in May, while rising 2.0% on a yearly basis as expected, up from 1.9%, as core prices rose 0.9% y/y, down from 1.1%, and missing estimates of 1.0%. 

Bank of France Governor François Villeroy noted earlier that French economy is performing better than expected, with third-quarter GDP growth outlook still positive, and adding that the timeline for the ECB first rate hike will depend on inflation, with a possible date in late 2019. 

US Housing Data 

Earlier US data showed housing starts fell 12.3% to an annualized 1.173 million units in June, compared to a 4.8% rise in May to 1.337 million, while analysts expected a 4.8% rise to 1.320 million. 

Building permits fell 2.2% to 1.273 million, compared to a 4.6% drop in May to 1.301 million, while analysts expected a 2.2% rise to 1.330 million.