EURUSD intends to continue growing. Overview for 20.11.2018

The major currency pair is back to its two weeks highs and intends to continue strengthening. 

On Tuesday morning, EURUSD remains quite strong. The current quote for the instrument is 1.1449.

The recent story with interest high rates, decline in housing demand and everything that accompanied it, continued yesterday. The NAHB Housing Market Index dropped up to 60 points in November after being 68 points in October and against the expected reading of 67 points. Of course, it’s still pretty far away from the psychologically-crucial level of 50 points that shows decline and growth, but one should know that the actual numbers is the lowest since August 2016. 

People from the housing sector say that the indicator is falling because home buyers are very cautious due to the systematic growth of interest rates, which influences mortgage rates. In general, there are still home buyers and demand for housing, but the downward tendency is really concerning. 

The components of the report show that the subindex for current single-family home sales fell to 67 points from 74 earlier, for home sales over the next six months went down to 65 points from 75 points, and prospective buyers slipped to 45 points from 53 points.

As a result, the White House’s complaints against the US Federal Reserve relating to systematic rates hikes, which result in slowdown in the housing market numbers, may yet continue in the future. This is not good for the USD.