Dollar Makes 11 Month High on Upbeat U.S. Housing Market

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The U.S. Dollar soared to hit an 11 month high against other major currencies this morning, after the U.S. Commerce Department released positive Building Permits and Housing Starts numbers.

Building Permits increased +8.1 percent to 1.052 million units, versus June’s number of only 973,000 units. Market analysts had only expected a +2.5% rise in July to 1.0 million units.

Guest post by Jay Hawk of Orbex

Also released in the report was Housing Starts data, which showed a +15.7% increase, with 1.093 million units started in July versus the only 945,000 units started in June. This favorable Housing Starts result also considerably exceeded the market analysts’ consensus estimate of an only +8.6% increase to 969,000 units started.

The surge in Housing Starts showed starts of single-family homes increased by +8.3% last month to 656,000 units, while multi-family home starts jumped by +33% to 423,000 units, the highest increase seen since January of 2006.

Analysts felt that the notable rise in Housing Starts and Building Permits could signal a turnaround in the U.S. housing market, which would in turn lend considerable support to the U.S. Dollar going forward.

The U.S. Dollar reacted quickly to the good news for the U.S. housing market by rising sharply against the other major currencies. After closing yesterday at 81.576, the U.S. Dollar Index rose as far as 81.835 in the wake of the positive housing data’s release. This new recent high seen in the U.S. Dollar Index today was the highest the index had printed since the middle of September of last year. 

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About Author

Jay Hawk of Orbex enjoyed a twelve year professional financial markets career incorporating extensive first hand futures and options experience obtained by trading in the stock, commodity and forex markets on U.S. exchanges. Jay Hawk personally leased seats and traded as a specialist market-maker with a broker/dealer license on major U.S. trading floors. He also ran stock and options broking desks with hundreds of retail and professional accounts, and I actively managed trading portfolios for private clients as large as $30 million both on and off the trading floors. In addition, Jay started a professional options stock exchange brokerage to provide brokerage services on to floor market-makers and upstairs traders located in New York and Chicago. Jay also gave option seminars as both a consultant and educator and helped start the exchange traded currency options market.

1 Comment

  1. here is what ticks me off about you clowns. You come on here and spew lie after lie about housing . here are the facts. Housing if worse off now than the financial crash of 08 when it hit rock bottom! Home starts are at the lowest point on over 14years. Over half of these new home starts are multi family and consist of apartments, condos and retirement communities. The birth rate is no where near close of keeping up today with the demand of new homes needed. baby boomers are retiring and a flood of homes are now hitting the market. Theres no such thing as a pant up demand! Stop the lies! boomers are down sizing and moving into retirement communities or smaller homes you idiots!