News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
EUR/USD
Bearish
Oil - US Crude
Bearish
Wall Street
Bearish
Gold
Bearish
GBP/USD
Mixed
USD/JPY
Bearish
More View more
Real Time News
  • Heads Up:🇩🇪 Unemployment Change (OCT) due at 08:55 GMT (15min) Expected: -5K Previous: -8K https://www.dailyfx.com/economic-calendar#2020-10-29
  • Heads Up:🇩🇪 Unemployment Rate (OCT) due at 08:55 GMT (15min) Expected: 6.3% Previous: 6.3% https://www.dailyfx.com/economic-calendar#2020-10-29
  • Join @PaulRobinsonFX 's #webinar at 5:30 AM ET/9:30 AM GMT to learn about how you can become a better trader. Register here: https://t.co/WeWGKtdlyz https://t.co/Y5QwPu6VFl
  • There are three major forex trading sessions which comprise the 24-hour market: the London session, the US session and the Asian session. Learn about the characteristics of each session here: https://t.co/UVvf51HiVP https://t.co/3r13nscC3b
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 96.86%, while traders in NZD/USD are at opposite extremes with 67.52%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/Wi0yVXyWa2
  • Heads Up:🇪🇺 European Council Video Conference due at 08:00 GMT (15min) https://www.dailyfx.com/economic-calendar#2020-10-29
  • Commodities Update: As of 07:00, these are your best and worst performers based on the London trading schedule: Gold: 0.31% Silver: 0.00% Oil - US Crude: -0.38% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/oPySSItzHj
  • Did you know a Doji candlestick signals market indecision and the potential for a change in direction. What are the top five types of Doji candlesticks? Find out: https://t.co/td5WA4hCZC https://t.co/yuDHExcNjX
  • Forex Update: As of 07:00, these are your best and worst performers based on the London trading schedule: 🇦🇺AUD: 0.39% 🇨🇦CAD: 0.26% 🇳🇿NZD: 0.24% 🇨🇭CHF: 0.08% 🇪🇺EUR: 0.01% 🇯🇵JPY: -0.02% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/DndMDRbNla
  • EU Stoxx 50 May Fall Further on European Lockdowns Ahead of ECB - https://www.dailyfx.com/forex/fundamental/daily_briefing/session_briefing/euro_open/2020/10/29/EU-Stoxx-50-May-Fall-Further-on-European-Lockdowns-Ahead-of-ECB-.html?CHID=9&QPID=917708&utm_source=Twitter&utm_medium=Moss&utm_campaign=twr $FESX $EUSTX #EUStoxx50 #ECB https://t.co/AhsRZJfUKT
US Dollar May Rise on Housing Data and Industrial Reports

US Dollar May Rise on Housing Data and Industrial Reports

2019-12-23 08:00:00
Dimitri Zabelin, Analyst
Share:

US Dollar, Housing Data, Fed Policy– Talking Points

  • The US Dollar could rise after housing data is released
  • Greenback gains may be amplified by industrial reports
  • Holiday-packed week likely to result in thinner liquidity

APAC Recap

The Australian and New Zealand Dollars rose after China announced that it will lower import tariffs for some US goods starting on January 1, 2020. This comes as Beijing and Washington continue to negotiate a trade agreement following the completion of phase 1. Looking ahead, the holiday-packed week means liquidity will be thinner than usual which opens the door to potentially violent volatility.

US Dollar Outlook

The US Dollar may rise if local housing data beats forecasts and upside potential may be magnified by the release of industrial statistics. Preliminary durable goods orders for November are expected to have grown to 1.5 percent, higher than the prior 0.5 percent figure. Since US-China trade tensions have somewhat eased, trades may start seeing marginal improvements in manufacturing reports.

New home sales for November are expected to grow at a slightly slower pace with an estimate of a 730k print, three thousand less than the prior 733k report. Housing data may start getting softer since the Fed announced that it intends on holding rates unless economic conditions became materially worse or inflation remains persistently above the 2 percent target.

Chart showing US housing starts

Therefore, since credit conditions are largely expected to remain unchanged – as opposed to earlier this year when rates were cut several times – borrowers may be less inclined to take on a mortgage. As a result, inflation may start to become more tepid. This is because when borrowers typically buy a house, it results in a multi-iterated spending spree as consumers purchase goods to fill their homes with which typically boosts price growth.

US DOLLAR TRADING RESOURCES

--- Written by Dimitri Zabelin, Jr Currency Analyst for DailyFX.com

To contact Dimitri, use the comments section below or @ZabelinDimitrion Twitter

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES