Forex: Strong USA housing figures don’t bring much help for the USD

Important: This page is part of archived content and may be outdated.

Existing home sales figures for the month of March have been announced in the USA. The announce figure was 5.10million beating the market’s expectation of 5 million and the 4.92 million figure of February. In percentage terms these are equivalent to a 3.7% rate for the month of March an expected rate of 2.5% and a previous rate of -8.9%. Following the news announcement there was some minor volatility generated in currency pairs such as the USDCAD and AUSUSD which was recapped.

The Existing Home Sales figures, show an indication of housing market conditions. The housing market being a sensitive factor of the US economy, it is natural to generate some volatility for the USD. Usually, a high reading is associated with hawkish USD behavior while a lower value with bearish.