US new home sales rise by 4.5% in March
Not that the USD needs another strong to its bow, but new home sales came in at 692k in March, representing a 4.5% rise on the prior month against expectations of a 3% fall. The housing market in the US has been a potential weak link amid otherwise strong economic metrics, which see a low unemployment rate alongside GDP levels far outperforming those of its peers.
However, the USD has already seen a strong move higher today, sending the lead EUR/USD rate down to 1.1200, where we are now testing the figure with a view to pushing on for a retest of the 1.1175 lows.
The rest of the pack is following lower with the exception of the JPY as we have already mentioned, which continues to be held off 112.00+ levels, though not for the want of trying.
We also watching Cable and AUD/USD, and both these key currency pairs have key support levels which they are currently challenging and which we expect to be pressured once North American traders have control of the playing field later on.
USD/CAD is still trying to grind a path higher towards the cluster of resistance at 1.3435-70, though we may see sellers containing these levels ahead of the BoC announcement tomorrow.