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.

Loonie recovers

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.

The information on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG Bank S.A. accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer.

Start trading forex today

Find opportunity on the world’s most-traded – and most-volatile – financial market

  • Trade spreads from just 0.6 points on EUR/USD
  • Analyse with clear, fast charts
  • Speculate wherever you are with our intuitive mobile apps

See an FX opportunity?

Try a risk-free trade in your demo account, and see whether you’re onto something.

  • Log in to your demo
  • Take your position
  • See whether your hunch pays off

See an FX opportunity?

Don’t miss your chance – upgrade to a live account to take advantage.

  • Get spreads from just 0.6 points on popular pairs
  • Analyse and deal seamlessly on fast, intuitive charts
  • See and react to breaking news in-platform

See an FX opportunity?

Don’t miss your chance. Log in to take your position.

Live prices on most popular markets

  • Forex
  • Shares
  • Indices

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.