EUR/USD jumped today after the German business climate unexpectedly improved this month (Event A on the chart) and the Spanish bill auction ended with a good outcome. Today’s report from the United States demonstrated an improvement in the housing market.
Both housing starts and building permits advanced in November. Housing starts were at a seasonally adjusted annual rate of 685k, compared to the revised October estimate of 627k. Building permits were at a seasonally adjusted annual rate of 681k, above the revised October reading of 644k. (Event B on the chart.)
A report was released on December 16, showing that CPI posted no change (0.0%) in November on a seasonally adjusted basis. That’s better than the October decline by 0.1%, but worse than the expectations of a 0.1% increase. (Not shown on the chart.)
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