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.
This information has been prepared by IG, a trading name of IG US LLC. This material does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. You should not treat any opinion expressed in this material as a specific inducement to make any investment or follow any strategy, but only as an expression of opinion. This material does not consider your investment objectives, financial situation or needs and is not intended as recommendations appropriate for you. No representation or warranty is given as to the accuracy or completeness of the above information. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. Any research provided should be considered as promotional and was prepared in accordance with CFTC 1.71 and designed to promote the independence of investment research. See our Summary Conflicts Policy, available on our website.
Start trading forex today
Trade the largest and most volatile financial market in the world.
- Spreads start at just 0.8 pips on EUR/USD
- Analyze market movements with our essential selection of charts
- Speculate from a range of platforms, including on mobile
Live prices on the most popular forex markets