A weak housing sell portends a decrease in the interest rate by the Decisive Bank even if a strong housing advertise raises fears of inflation and a potential expand in the attract rate. As a foreign exchange trader, you need to keep an eye on the central sources of housing data and develop a solely concetrate on central indicators for each fx trading pair.
For forming your promote sentiment about US Dollar, you can keep watch on housing equities. Housing equities know how to give out you an important clue about the prevailing trend in the US housing section. At the moment KB Homes is a leading indicator of single family homes in US. KB Homes stock charge can be taken as a leading indicator of the energy or weakness of the US housing market.
Fibonacci Strike Blogroll
Believe, you switch GBPUSD pair! In July 2006, an uptrend in GBPUSD pair begin that lasted for many months. The forex movement went to historical highs comparing with the US Dollar (USD) and then retraced back at the end of 2007.
What was the foremost cause of the trend reversal. The key cause has been the fall in the housing price tags in UK housing promote after a decade long boom that ended around 2007 when the home mortgage crisis reached its peak in the UK housing market. At the moment, if you had been following this trend, you would have observed that the foreign exchange pair GBPUSD followed the slowdown in the UK housing promote. At the moment, you ought to be thinking housing department may be key for the US and UK economies merely. No, you can apply housing market date in Australia to trade AUD (Australian Dollar). If you have been following Bloomberg last year, you have to have known this is why AUD rose. The reason was straightforward, when the home place approval rates surged, AUD appreciated.