Today's two US housing data failed to be a catalyst for the US dollar. Building Permits increased, but New Home Sales fell.

The greenback continued to be pressured against most major currencies in the early trading week (November 27). The US Dollar Index (DXY) slumped to around 103.40 following the release of two mixed US housing data at the start of the New York session.

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Building Permits data grew +1.8% in October 2023. The figure signaled a recovery from the -4.5% slump in the previous period, as well as better than the consensus estimate of +1.1%.

New Home Sales data for the same month actually performed worse. Sales declined to -5.6%, whereas the previous consensus only anticipated a decline to -4.5%.

Both US housing data were unable to dent market speculation about a Fed rate cut next year. CME data shows the market is still pricing in a 23% chance of a Fed rate cut from March, as well as a 50% chance of a cut from May.

Helen Given, FX trader at Monex USA, told Reuters that the odds of an earlier Fed rate cut in 2024 compared to the ECB and BoE have "combined to put pressure on the dollar at the moment". Furthermore, she thinks the next development will depend on the data.

"I don't see much potential for a turnaround until later this week when Q3 GDP (gross domestic product) numbers are released Wednesday morning," said Helen Given, FX trader, at Monex USA in Washington. "If the U.S. economy can show sustained growth, rather than a sudden sharp downturn as some major economists have predicted, we could see a reversal and some dollar strength to end the month." 

Various major currency pairs are currently fluctuating limitedly as market liquidity is still minimal post-Thanksgiving. In addition, market participants are also waiting for a series of other important economic data that could have a major impact on the forex market. Starting from the US Consumer Sentiment data on Tuesday; New Zealand interest rate announcement and German consumer inflation on Wednesday; China PMI report, Eurozone inflation, and the US PCE Price Index on Thursday; then the US Manufacturing PMI report and Jerome Powell's speech on Friday.