Lower mortgage rates help boost US builder confidence
Daily Currency Update
The US Dollar Index (DXY) was down just -0.02% this morning from Friday’s levels. The National Association of Home Builders (NAHB) Housing Market Index, which checks the pulse of the single-family housing market, was released showing positive movement at 37. This is above the forecasted level of 36 and the previous 34 reading. Falling mortgage rates helped end a 4-month decline in builder confidence. Stocks opened high today after markets deciphered Federal Reserve comments from last week. Expectations for a March rate cut of at least 25 basis points (bps) was at 71% according to CME’s FedWatch Tool.Key Movers
German business owner’s economic outlook dipped. The German IFO Institute Business climate index came in at 86.4. This was below the forecasted 87.6 and previous reading of 87.3. Meanwhile, the Spanish balance of trade also dipped to -5.1 billion from the previous -3.8 billion.The GBP drifted again today after a strong week last week. Inflation and retail sales data is set to be released this week, which will help determine future movements for the pound.
The JPY retreated today as the Bank of Japan (BoJ) opened their two-day meeting that could determine the end of the bank’s loose stance on interest rates. The tentative schedule shows an interest rate announcement today.
The Canadian dollar held steady this morning around 1.33 against the USD after Bank of Canada (BoC) Governor Tiff Macklem comments on Friday. Macklem noted that there has been progress made on inflation but said it was still too soon to discuss rate cuts. The New Housing Price Index monthly data was released at -0.2%, which was below both the forecasted 0.1% and the previous 0.0%. The selling pricing of new homes declined with builders reporting weak market conditions as the reason for the declines. Oil was up this morning 2.69% to back over USD$73 a barrel. Canadian Consumer Price Index (CPI) data is set to be released tomorrow.
Expected Ranges
- EUR/USD: 1.0891 - 1.0931 ▲
- GBP/USD: 1.2639 - 1.2703 ▼
- AUD/USD: 0.6692 - 0.6735 ▼
- USD/CAD: 1.3350 - 1.3403 ▲