Article / 19 July 2016 at 22:48 GMT

US Market Wrap: Strong US housing data undermines EURUSD

FX Consultant / IFXA Ltd

  • Australia: Westpac Leading Index-May     2030 GMT                                                   

US data released

  • Housing Starts-June (Actual 1.189 million vs. May 1.135 million) 
  • Building Permits-June (Actual 1.153 million vs. May 1.138 million) 
  • API Crude Stocks Change (Actual -2.3 million barrels vs. 2.2 mln/b last week) 

It wasn’t an especially exciting day in FX markets. Unlike yesterday when traders were selling US dollars, today they were buying them, with only EURUSD and GBPUSD losing ground.

EURUSD was offered at the start of the day, undermined in part by soft ZEW data in the Eurozone and Germany. The opening level of 1.1060 was the high of the day and was never seen again all day. The single currency bottomed out at 1.1000 near lunch time and spent the rest of the session moving sideways. GBPUSD suffered a similar fate, opening at the high (1.3190) and closed just above the low of 1.3070. USDJPY rallied in the early going and then slid lower until the close.

Better-than-expected US housing data helped keep the 2016 rate hike dialogue going. The 4.8% jump in June housing starts was the second-highest level in eight years.

The Dow Jones Industrial Average squeaked out a gain to keep its eight-day winning streak alive helped by Johnson and Johnson (JNJ: NYSE) beating expectations.

WTI oil prices tumbled after touching $45.64 around breakfast and finished the day at $44.65. The API Crude Stocks Change report was released and crude declined by 2.3 million barrels. Gasoline inventories rose.


Last year at this time, the US presidential election was supposed to be Hillary Clinton vs. Jeb Bush writes Saxo Bank Editor, Michael McKenna in: Vols market quiet as Trump enters final round.

 Better-than-expected US housing data – up 4.8% in June – helped keep the
2016 rate hike dialogue going. Photo: iStock

– Edited by Gayle Bryant

Michael O'Neill is an FX consultant at IFXA Ltd. Follow Mike or post your comment below to
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Missed a day? Here’s what we had to say during our Asian session and our regular European Morning Markets, From the Floor and Mid-session Europe.


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