Ahead of FOMC, US housing data better than expected

DailyFX

Talking Points

  • USD Building Permits (NOV) beats expectations of 990K and 889K prior.
  • USD Housing Starts (NOV) beats expectations of 950K and 889K prior.
  • US Dollar failed to retain gains after the release

The US Dollar posted some temporary gains, as US housing data beat expectations.

US Building Permits (NOV) came in at 1007K, beating expectations for 990K and 889 prior. US Housing Starts reported at 1091K, beating expectations for 950K and 889K prior. This data is released ahead of FOMC and a rate decision. There were no revisions for either of the data prints, and the data may not impact the Fed’s decision to taper or not to taper.

US Building permits indicate the number of new building projects authorized for construction. This is the first step in the construction process and is indicative of investor optimism. US Housing Starts is an economic measure of the housing market gauging the number of new houses built in the United States.

USDJPY( 1-minute Chart) December 18, 2013

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Ahead_of_FOMC_US_housing_data_better_than_expected_body_Picture_1.png, Ahead of FOMC, US housing data better than expected

Source: FXCM Marketscope

Following the data, the US Dollar jumped 10 pips against the Yen, before quickly erasing its gains at the time of this writing. USDJPY may see resistance at 5-year high set last week at 103.91.

Written by David Maycotte, DailyFX Research Team. Feedback can be sent to dmaycotte@fxcm.com.

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