Construction data in the USA

• Building permits  (Feb), fact 1,296M, forecast 1,320M.
• Building permits (m/m) (Feb), fact -1.6%, the forecast -1.3%.
• Housing starts (Feb),  fact  1,162M, forecast 1,213M.
• Housing starts (m/m) (Feb), fact -8.7%, forecast -0.8%.

The report on the construction of new houses in the US in February was worse than expected. This report actually showed a value slightly higher than the minimum for the year, which is a very negative indicator in terms of general negative dynamics of the US real estate market, but also indicates a slowdown in this negative dynamics. As a result, this report can be regarded as restrainedly negative and one that is not a significant driver for sales of the US dollar.

Fig. 1. Building permits chart

The US dollar index did not actually respond to weak data on construction in the United States. The US currency returned to growth at a break from support 96.50-40, indicating a potential for renewed growth, but is limited by resistance 96.70-80. Also weak data on construction in the US is likely to limit the continued growth of the American dollar.

Fig. 2. The US dollar index chart. The current price is 96.60 (10-year government bonds yield is the blue line)

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Hanzenko Anton

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