All things housing appear to be on a roll

Wells Fargo Research Team Wells Fargo

U.S. Review

All Things Housing Appear to Be On a Roll

A recent strong report from the National Association of Homebuilders set the tone for another round of strong housing data. The NAHB index rose two points to a record high 85.
A drop in new apartment construction led to a below consensus housing starts report but single-family starts rose solidly.
Existing home sales easily topped expectations, with sales jumping 9.4% to a 6.54-million unit pace.
Weekly first-time unemployment claims declined more than expected and continuing claims fell by more than one million.

Global Review

China Leading the Global Economic Recovery

Q3 GDP data revealed China is still leading the global economic recovery from the COVID induced downturn. In addition, leading indicators of activity beat expectations in September, giving us slightly more optimism around the health of China’s economy heading into the end of the year.
As Eurozone countries grapple with a second wave of COVID cases and new localized lockdown protocol, activity and sentiment data could start to deteriorate. In that context, the services PMI declined more than expected in October; however, the manufacturing PMI beat expectations and surprised to the upside.

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Wells Fargo Research Team

Wells Fargo

EUR/USD hovers around nine-day EMA above 1.1800

EUR/USD remains in the positive territory after registering modest gains in the previous session, trading around 1.1820 during the Asian hours on Monday. The 14-day Relative Strength Index momentum indicator at 54 is edging higher, signaling improving momentum. RSI near mid-50s keeps momentum balanced. A sustained push above 60 would firm bullish control.

GBP/USD holds medium-term bullish bias above 1.3600

The GBP/USD pair trades on a softer note around 1.3605 during the early European session on Monday. Growing expectation of the Bank of England’s interest-rate cut weighs on the Pound Sterling against the Greenback.

Gold sticks to gains above $5,000 as China's buying and Fed rate-cut bets drive demand

Gold surges past the $5,000 psychological mark during the Asian session on Monday in reaction to the weekend data, showing that the People's Bank of China extended its buying spree for a 15th month in January. Moreover, dovish US Federal Reserve expectations and concerns about the central bank's independence drag the US Dollar lower for the second straight day, providing an additional boost to the non-yielding yellow metal.

Bitcoin, Ethereum and Ripple consolidate after massive sell-off

Weekly column: Saturn-Neptune and the end of the Dollar’s 15-year bull cycle

Tariffs are not only inflationary for a nation but also risk undermining the trust and credibility that go hand in hand with the responsibility of being the leading nation in the free world and controlling the world’s reserve currency.

Bitcoin, Ethereum and Ripple consolidate after massive sell-off

Bitcoin, Ethereum, and Ripple prices consolidated on Monday after correcting by nearly 9%, 8%, and 10% in the previous week, respectively. BTC is hovering around $70,000, while ETH and XRP are facing rejection at key levels. Traders should be cautious: despite recent stabilization, upside recovery for these top three cryptocurrencies is capped as the broader trend remains bearish.