EUR/USD (a 4-hour chart)
The conflicting data statistics for the U.S. didn’t have a noticeable effect on Tuesday. The building permits in the U.S. rose up to 4 -month high, while new homes buildings declined slightly, falling to 4 -month low. The number of building permits increased in February by 7.7% to 1018 thousand from 950 thousand in the previous month, far exceeding expectations - this is the highest growth rate since last year October.
Yen strengthened despite the rise in risk appetite –the stock markets rose up after Russian President Putin said that Russia doesn’t want the division of Ukraine. Russia, according to Putin, didn’t deploy its troops in the Crimea; it just has strengthened its force under an international agreement. The Russian President Putin on Tuesday signed the Treaty of Accession of the Crimea to Russia, despite the sanctions imposed by the U.S. and Europe.
The euro was down against the backdrop of a sharp decline in economic expectations in Germany to 7 -month low, but by the end of the day it got everything it declined. The ZEW index of economic expectations in Germany fell down in March, the third consecutive month - to 46.6 against 55.7 in February, high above the expectations for a decline to 53. The expectations has declined because of the concerns about the situation in China and continued uncertainty around Russia and Ukraine. At the same time, the current conditions index rose up to 51.3 in March from 50.0 in February, its highest level since August 2011.