Housing Data Disappoints, EUR/USD and GBP/USD Hold their Ground

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Housing Data Disappoints, EUR/USD and GBP/USD Hold their Ground

Post  harpal1980 on Wed Oct 21, 2009 9:20 am

After a lackluster morning yesterday, volatility picked up prior to the U.S open, as economic data disappointed investors. Housing starts and Building Permits both missed analysts’ estimates, coming out at 0.59m and 0.57m, respectively. Even though the numbers were only slightly under market expectations, the data showed investors that despite recent improvement, the housing market is going to encounter bumps in the road to recovery. Analysts’ were expecting a housing start result of 0.61m.

The major indices presented a negative session yesterday, closing with an average loss of -0.5%. Even though names like Apple and Caterpillar showed better than expected results, they failed to drive the indices higher. Caterpillar beat analyst’s estimates mentioning that despite the drop in profit, in the third quarter, the company expects it to be the lowest point and that the equipment giant should get back on its feet in the following quarters.

From a technical point of view, the Dow Jones Industrial Average has presented consolidation around its psychological level. On one hand, this index has failed to present an immediate break of the important level. (This was expected and explained in the previous video briefing). On the other hand, it continues to linger around that level and has so far failed to drop – this is often a good sign for further bullish traders.



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harpal1980

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