Forex – Dollar Flat as New Home Sales Undershoot Forecasts

© Reuters. – The dollar was unchanged against a basket of major currencies shrugging off weaker-than-expected housing data as yields moved off lows helping the greenback pare losses.

The , which measures the greenback’s strength against a trade-weighted basket of six major currencies, fell 0.01% to 89.80.

The Commerce Department said Monday new home sales to a seasonally adjusted annual rate of , the lowest level since August 2017. That missed economists’ forecasts. The negative headline number, however, was downplayed by market participants citing weather-related issues weighed on housing activity last month.

Amherst said single-family starts, which tend to run well ahead of single-family building permits, were “noticeably below permits in December and in-line with them in January,” suggesting that adverse weather conditions may have weighed on new home sales. The research firm added that with housing starts rising and sales falling in January, the market is “seeing a replenishment in new homes for sale ahead of the spring selling season.”

A sharp reversal in sterling against the dollar, meanwhile, also helped the greenback recover losses with some citing a £2.3 billion option expiry with a 1.4 strike at 10 a.m. ET as the main for move lower in cable.

fell 0.19% to $1.2296 after setting an intraday high of $1.3952 amid remarks by Bank of England Deputy Governor David Ramsden, who said he now sees the case for hiking rates sooner than later.

fell 0.05% to $1.2298 as European Central Bank president Mario Draghi said that while the euro area economy is expanding robustly, inflation has yet to show a sustained upward trend.

rose 0.32% to $1.2695 while rose 0.22% to Y107.03.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.