Strong US Building Figures But USD Keeps Sliding
Skerdian Meta • 1 min read
The report for the US house construction sector is the most important forex event today as we mentioned in the previous update. It released a while ago with pretty impressive figures. This was in line with the recent economic data we have seen recently from across the pond.
Building permits jumped from 1.17 million to 1.25 million, while housing starts increased by about 100k and last month´s numbers were revised higher as well.
That was supposed to give the Buck a lift since it diminishes worries about a possible slowdown in the US economy, but the USD was nearly unchanged.
Actually, the Buck slipped after the release, especially against the JPY. USD/JPY lost about 50 pips but that was more of a relief rally that the numbers weren´t even better.
That went in our favor since we had a live sell forex signal in this pair which we opened last night. It reached the take profit target shortly after the release.
Next, on the calendar comes the US oil inventories which will be very interesting for CAD traders to watch. Although, the Canadian Dollar is already 70 pips higher compared to a few hours ago, so the market is already long on the CAD.