Good news from jobs but disappointing from the housing sector. Jobless claims dropped to 302K and continuing claims to 2.507 million.The 4 week moving average stands at 309K. Housing starts fell to 893K and building permits to 963K.
Jobless claims were expected to stand at 310K after 304K last week (before revisions). Building permits were predicted to advance to 1.04 million (annualized) from 0.99 million in June and housing starts to 1.02 million from 1 million.
The dollar was slightly firmer towards the publication, with EUR/USD at 1.3525, GBP/USD under 1.71 and USD/JPY more stable at 101.50. The dollar was initially weaker but, with EUR/USD moving above 1.3530, but it is now returning to the pre-data levels.
There is another important figure coming out of the US: See how to trade the Philly Fed Index with EUR/USD coming up at 14:00 GMT.
While there is a strong correlation between economic growth and housing, the Fed seems less concerned about housing at the moment. Inflation (in its various measures) and jobs grab more attention.
Share
