The sales of existing houses in US rose the most since October with a growth of 4.9% from last month. This is one of the key indicators for economic health as the housing market has a ripple effect on the overall economy. The final figure of 4.89 million new houses beat the estimate by a healthy margin.
However the markets reacted in the opposite manner yesterday where the USD failed to gain against major currencies.
According to Mr Tan, an increase in house sales would decrease the demand in the US dollar, which explains why the dollar did not enter a bull run yesterday.
I did not trade based on this data yesterday as I already have open positions in AUD/USD, EUR/USD, GBP/USD, USD/CHF and USD/JPY from a few days ago.
No comments:
Post a Comment