The greenback was under a strong selling after The decline of the US consuming sentiment survey of US UN Michigan to its lowest level since 1980 at 59.5 could offset the US housing starts rise by 8.2% which is the highest rate in 2 year last Friday. The disappointing consuming sentiment figure has offset The US housing starts which increased to 947k in April from1032k in March and also the building permits increased from 920k to 978k.
The greenback was underpinned recently as the easing cycle may be over and the huge loses of the crediting market due to the housing market will not be repeated again has contained the market sentiment. The fed has given a less worried language about growth in its recent assessment after last interest rate decision meeting when the fed has cut the interest rate by just .25% in a split decision as there were an opposing from Fisher and Plosser who were preferring holding with no change. We wait later this week for the minutes of this meeting next Wednesday and we want to know more about their inflation upside risks evaluation especially as the oil prices have surpassed the 120 level.
Best wishes
FX Consultant
Walid Salah El Din
E-Mail: mail@fx-recommends.com
http://www.fx-recommends.com
