Throughout 2020, there were few markets hotter than U.S. real estate. While home values varied significantly across regions, record-low mortgage rates spurred sales. However, the housing market did cool off in October and November amid growing political and COVID-19 uncertainty. In bucking a brief downtrend, December showed a nice rebound for Existing Home Sales (MoM, Dec.). Figures came in at 6.76 million, up from 6.69 million (Nov.), a month-over-month gain of 0.7%.

Today’s performance of the USD has been strong across the majors. A few of the key movers have been the USD/CAD (+0.75%), USD/JPY (+0.33%), and GBP/USD (-0.38%). Going into the weekend break, it looks like the Greenback is gaining steam ahead of next week’s FOMC Meeting.

The coming seven days features several noteworthy events on the economic calendar. Wednesday is the key forex session, featuring Durable Goods Orders (MoM, Dec.) and the FED Interest Rate Announcement.

On the FOMC front, the tone from Jerome Powell at the FED presser is going to be exceedingly important. No policy moves are expected; rates are to be held at 0.0-0.25% and open market operations are to remain static. However, it will be interesting to hear Powell’s commentary on the new strains of COVID-19 appearing in the U.S. and around the world. If the FED comes off as especially concerned about the future of COVID-19, we could see considerable forex and stock market volatility.

Friday, the PCE Price Index (MoM, Dec.), Personal Income (MoM, Dec.), and Personal Spending (MoM, Dec.) reports are scheduled for publication. Consensus estimates have these metrics lagging from November levels, suggesting that economic activity is flat to receding. Should these numbers disappoint expectations, be on the lookout for some pre-February volatility on Wall Street.

All in all, it has been a quiet day on Wall Street following a good Existing Home Sales report. Stocks are slightly negative, as are safe-havens. The big winner today has been the Greenback ― a rare occurrence over the past 8 months.