The dollar gained on the euro for the second session today as growth of the US housing market beat even optimistic forecasts, supporting the outlook for monetary tightening from the Federal Reserve in relatively near future. Meanwhile, inflation slowed a little, but this did not hurt the performance of the US currency.
Both housing starts and building permits exceeded expectations of market analysts. Housing starts were at the seasonally adjusted annual rate of 1,093k in July, up from 945k, while the median forecast promised an increase to just 970k. Building permits were at the seasonally adjusted annual rate of 1,052k last month, compared to the previous month’s rate of 973k and the predicted 1,000k. (Event A on the chart.)
CPI rose 0.1% in July, seasonally adjusted, matching forecasts perfectly. The June’s rate of growth was at 0.3%. (Event A on the chart.)
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