US dollar mixed after strong US housing data
Loonie recovering after big recent declines. EUR/USD falls through key short-term support.
The US dollar was mixed against major currencies after data showed that US housing markets continue well supported by this year’s lower interest rates.
Existing US home sales, which make up 90% of the US housing market, were up 1.9% in October from September, selling at a slightly lower-than-expected 5.46 million-unit annual rate. Due to low inventories of available homes, home prices are advancing rapidly with the average home selling for $270,900, up 6.2% from a year ago.
US existing home sales have been up in three out of the last four months.
The report had a small positive impact for the US dollar, with EUR/USD breaking below key $1.1072 100-day short term support on the four-hour chart, trading around $1.1062 midday in New York.
USD/CAD gave back Wednesday’s strong gains. The greenback has been advancing against the Loonie in recent sessions following a speech delivered in Montreal on Tuesday by a top Bank of Canada (BoC) official that was interpreted as dovish.
The BoC has sat on the sidelines this year while the US Federal Reserve has lowered interest rates, with the resulting wider interest rate spreads supporting the Loonie, which is up more than 3% against the US dollar since January.
In midday New York trading, USD/CAD was off about 35 pips at $1.3277.
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