So much for a putting an end to the dollar’s losses! Thanks to better-than-expected economic data from the U.S., the high-yielding currencies gained ground against the Greenback. The dollar bears were able to push GBP/USD 156 pips up from its open price, while EUR/USD also rocketed by 83 pips to 1.3078.
The good vibes started spreading during the London session when Germany printed better-than-expected economic reports. Not only that, Spain apparently had a successful bond auctions too, selling 5.64 billion EUR worth of bonds against the target of only 4.5 billion EUR.
Still, it was the U.S. economic reports that sealed the deal for the currency bulls. The U.S. building permits printed at 680,000 in November, a 9.3% jump that represents the highest level in 19 months. In addition, housing starts clocked in at 690,000 in the same month against expectations of only a 640,000 million figure. Booyah!
Let’s see if the U.S. can follow through with its string of strong economic reports today. At 3:00 pm GMT we’ll get hold of the existing home sales report, followed by the crude oil inventories data at 3:30 pm GMT.
Keep a close eye on these reports if you’re trading the news!