Housing Starts Plunge

Housing starts data released by the US were worse than expected and have had a negative effect on the dollar and the Forex opportunities it has provided recently. The data showed U.S. housing starts and permits plunged to record lows in November.

Euro Up Against Dollar

The Euro traded at $1.3727 up 0.1% after falling in earlier trading and weaker Euro Zone figures. US housing starts fell 18% to a seasonally adjusted annual rate of 625,000 units down from 771,000 units in October. Wall Street analysts had predicted 740,000 starts in November.

Brian Dolan, chief currency strategist at Forex.com stated, “The housing starts data is another bad sign for the overall U.S. outlook. There’s zero sign of any stabilization, dashing what had been some optimism that we were perhaps bottoming out (in the housing market).”

Dollar Benefits From Risk Aversion

Recently the dollar has benefited from risk aversion and has been seen as a safe haven for investors and has provided many with Forex opportunities despite the weak economic data from the US. Many see an uncertain future for the dollar but for the present it continues to provide a safe haven and Forex opportunity.

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