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USD weakens as US home prices beat expectations with 1.4% yearly gain
USD traded lower across major pairs following stronger-than-expected CaseShiller home price data showing a 1.4% yearly gain in November versus 1.2% forecast. The 20-city composite index rose 0.5% monthly, accelerating from 0.3% prior, while the national index gained 1.9% annually versus 1.7% previously. The data suggests renewed strength in the US housing market as buyers adjust to the new rate environment, accepting that pandemic-era ultra-low borrowing costs won't return. This housing market resilience could complicate the Federal Reserve's policy stance ahead of Wednesday's FOMC meeting, potentially limiting future rate cuts. The dollar index retreated 0.2% following the release, with traders reassessing expectations for aggressive monetary easing. Technical resistance for DXY sits at 108.50, while support emerges at 107.80. The improving housing data may provide underlying support for USD in coming sessions despite today's pullback.
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Sentiment:
Neutral
Source: Finnhub