Dollar appears to be rather troubled by disappointment in housing data. Selloff accelerates against Euro, Swiss Franc and Yen. Though, the greenback is still in black against commodity currencies so far today.
The NAHB housing market index dropped to 60 in November, down from 68 and missed expectation of 67. That’s also the biggest drop in more than four years. We believe that the key, as seen by the markets, is comments in by NAHB Chairman Randy Noel. He noted that “customers are taking a pause due to concerns over rising interest rates and home prices.”
NAHB Chief Economist Robert Dietz. also complained that “recent policy statements on economic conditions have lacked commentary on housing, even as housing affordability has hit a 10-year low.” And, “given that housing leads the economy, policymakers need to focus more on residential market conditions.”
This is another factor that argues Fed should think twice in its rate path.
