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Continued American Housing Doesn’t Help The Dollar

Housing data in the US continues to shine, with Pending Home Sales showing strength and surprising. But the markets have their heads in the next two days: G20 Summit and NFP. Tension is high…

Pending Home Sales  have been very positive: A rise of 2.1%, compared to early expectations of 0.2%. Comparing to last month, it looks like the tables have turned: last month, Pending Home Sales fell by 7.7%!

This figure adds to various housing figures that have been published in the last few weeks: all were surprising to the upside. It began with Building Permits and Housing Starts, continued with New Homes Sales and Existing Home Sales, and today’s figure already makes it a trend.

American Housing is above the bottom. I don’t know if it’s renewed optimism, the stimulus plans, or that housing was at rock bottom, and just couldn’t go lower.

But the greenback hasn’t gained since the recent release: the majors haven’t made any moves. EUR/USD Mobile Price Alert trades at 1.3253, GBP/USD Mobile Price Alert at 1.4358, USD/JPY Mobile Price Alert at 98.95 and USD/CHF Mobile Price Alert 1.1410 at the moment of writing.

Also the positive  ISM Manufacturing PMI didn’t move the markets. IT recorded a surprise at 36.3, more than 35.8 that was expected, and more than last month’s 35.8.

The negative figure was the  ADP Non-Farm Employment Change or ADP Non-Farm Payrolls. It plunged by 742K of jobs, much worse than -660K that was expected. Though considered a warm up figure for the Non-Farm Payrolls on Friday, this figure’s correlation with NFP is far from perfect, to say the least…

It seems as if the markets are tensed towards the G20 summit tomorrow. Different news regarding the summit have been published in recent days. The general notion is that the leaders will fail to take action, and settle for a joint statement of concern. But nothing has been finalized, so anything can happen.

The markets are tense towards tomorrow’s news. Thursday will also feature a new interest rate in Europe. The ECB could also announce some Quantitative Easing, thus joining    the “forex war“.

And on Friday, well the regular circus of Non-Farm Payrolls will dominate.  

So today, the market is waiting…

Yohay Elam

Yohay Elam

Yohay Elam: Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I've accumulated. After taking a short course about forex. Like many forex traders, I've earned a significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I've worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts.