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.

Free Trading Guides
EUR/USD
Bullish
Oil - US Crude
Mixed
Wall Street
Bullish
Gold
Bearish
GBP/USD
Mixed
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
USD/JPY
Bullish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
More View more
Real Time News
  • The trio of central banks overseeing the commodity currencies have already cut their main rates to all-time lows. Get your market update from @CVecchioFX here: https://t.co/OSUXrN5P3j https://t.co/3nwDel6e28
  • The tension from March continues to subside, allowing for the $USD to slide to fresh two-month-lows. Get your currencies market update from @JStanleyFX here: https://t.co/bRSRjUqg6Z https://t.co/Q35YpIZEd2
  • López Obrador hopes #USMCA will help tighten trade relationships between the US and Mexico. Get your currencies market update from @HathornSabin here: https://t.co/bZrUKSCGaS https://t.co/MZ7UoiWWRj
  • The $AUD may suffer as relations between Australia and China deteriorate amid dwindling growth prospects. Euro traders will be closely watching progress in talks about a €500b recovery fund proposal. Get your market update from @ZabelinDimitri here: https://t.co/LkEFJViPWY https://t.co/sofO135ElG
  • The US Dollar could rise against #ASEAN currencies such as the Singapore Dollar as US-China tensions seem to escalate. The Indian Rupee is also looking ahead of local 1Q GDP data. Get your ASEAN currencies market update from @ddubrovskyFX here:https://t.co/LkEFJViPWY https://t.co/ZGFaQQ3Hr2
  • The #Euro is the big driver here for DXY as it is 57% of the index. It is rising now and trying to break above the March 27 high at 11147. Get your $EURUSD technical analysis from @PaulRobinsonFX here:https://t.co/6gt3F9LuGP https://t.co/73SaL5AeXD
  • U.S. Market Analyst at https://t.co/JsVsSmefgR, Shain Vernier covers - ✔️ Safe haven assets in volatile markets ✔️ Central banks and governments ✔️ How will commodities trade in a recession Only on Trading Global Markets Decoded #podcast. Tune in here: https://t.co/1UmEzEbwiy https://t.co/EIC9YqfTec
  • Anybody else think that casting directors in movies are some of the most underrated people when it comes to giving a film/series credit?
  • No https://t.co/EoBltaP17k
  • Crude #oilprices may face heightened liquidation pressure as the cycle-sensitive #commodity finds itself under the pressure of resilient resistance and a vulnerable, multi-week rising channel. Get your crude #oil market update from @ZabelinDimitri here: https://t.co/cGPX4qcOH1 https://t.co/0U4JMJVFuf
Dow Jones, US Dollar Dragged Lower by Plummeting Existing Home Sales

Dow Jones, US Dollar Dragged Lower by Plummeting Existing Home Sales

2019-01-22 15:57:00
Rich Dvorak, Analyst
Share:

Talking Points:

  • United States Existing Home Sales for December drops the most since November 2015
  • The reading echoes investor fears of a late economic cycle slowdown
  • The trend of worsening economic data and fading market optimism continues

Appetite for risk is quickly souring again on the back of reignited concerns over global growth and the economic cycle. The United States just released its Existing Home Sales data for December which showed a whopping 6.4 percent decline from the prior period. The reading compares to an expected decline of only 1.5 percent.

US EXISTING HOME SALES PRICE CHART: MONTHLY TIMEFRAME (JANUARY 2007 TO DECEMBER 2018) (CHART 1)

US Existing Home Sales Price Chart December 2018

The drop highlights a persistent weak spot in the US economy which has been under pressure for the last several months. Although existing home sales are not included in GDP calculations, the slowdown in the indicator can provide insight on the severity of the weakening real estate market in the United States which indirectly impacts American sentiment and consumption. Also, the decline begins to scratch the surface of the impact from a US Government Shutdown as the review and approval of certain mortgage loan applications are delayed.

The Dow Jones and US Dollar Index both took poorly to the news and extended their declines immediately following the report. This looks to exacerbate the shifting sentiment to a more pessimistic tone seen so far this week as risks surrounding slowing growth, tightening financial conditions and political instability resurface.

US DOW JONES INDEX PRICE CHART: 1-MINUTE TIMEFRAME (JANUARY 22, 2019 INTRADAY) (CHART 2)

US Dow Jones Index Price Chart January 22, 2019

US DOLLAR INDEX DXY PRICE CHART: 1-MINUTE TIMEFRAME (JANUARY 22, 2019 INTRADAY) (CHART 3)

US Dollar Index DXY Price Chart January 22, 2019

---

Written by Rich Dvorak, Junior Analyst for DailyFX

Follow on Twitter @RichDvorakFX

Check out our Education Center for more information on Currency Forecasts and Trading Guides.

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

DISCLOSURES

News & Analysis at your fingertips.