USD – Housing & GDP Data This Week

The weekend probably came as a relief for many investors after a full week of swift market action which was packed with volatility. The USD finished within the stronger parts of its range versus both the EUR and GBP. There was little in the way of economic data on Friday and traders were left to sift through their rather cautious sentiment which has been generated by the ongoing EUR centric saga and a fixation on international bourses that have turned in rather poor sessions. Wall Street finished Friday on a high note but this came only after a rather tumultuous day which saw plenty of downside pressure. Existing Home Sales numbers will be presented today and an improvement to 5.62m is the estimate. The housing sector could be one of the key focal points for investors this week, if they have enough determination to take their eyes off of the Sovereign Debt questions.

The USD has kept up its strong safe haven stance and the question that is being asked during this phase is how long will the greenbacks momentum keep this pace? Taking into consideration the palpable caution that appears to be in nearly all mouths currently, it would be wise for traders to be on alert. Volatility has been a key ingredient of the broad market for nearly a month and this is likely to sustain itself. Not only is housing sector data on the schedule this week from the U.S., but on Thursday the Prelim GDP is in the cards along with the weekly Unemployment Claims. Coupled with the rather dynamic action from Wall Street that is probable and the ‘never ending’ dimensions in the European Sovereign Debt saga, investors should expect that they will continue face a difficult task. The USD has been nothing short of formidable and traders willing to test its ranges will have to take its trend into account.

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