The latest economic data from the US has threatened to halt the rally seen in the US dollar since the Fed meeting with the buck paring some of its gains. Both the number of building permits and the number of housing starts in the US came in below consensus forecasts in what could be seen as a warning sign on the health of the economy.
The USD is declining against most of its peers so far today, with the latest housing data adding to the selling pressure
The number of building permits issued in May fell to 1.17M – the lowest since September – and when taken alongside the drop in housing starts to a 6 month low of 1.09M the overall picture is looking not too rosy for the sector. There has been a fairly steady downtrend in both these indicators in recent years and both are now on the verge of entering back into contractionary territory on a year on year basis.
Both Housing starts and Housing permits have been trending lower in recent years. Today’s data has seen this continue with more declines.