The European currency managed to regain its position against the US dollar in the second half of the day on Tuesday, January 22, after the release of weak statistics on sales in the secondary housing market in the United States. In general, trade continues in a narrow side channel with a slight advantage on the side of sellers of risky assets, and, apparently, more significant changes in the market will occur only tomorrow, after the publication of the European Central Bank's decision on interest rates, since until that time traders would hardly will find new landmarks.
According to the report of the National Association of Realtors USA, sales in the secondary housing market in the US in December 2018 decreased. Thus, sales in the secondary housing market fell by 6.4% compared with November and amounted to 4.99 million homes per year. Economists had expected sales of 5.25 million. Compared to the same period of the previous year, sales fell by 10.3%. In general, for the entire 2018, sales of homes amounted to 5.34 million.
The main reasons for this reduction were high real estate prices, as well as higher mortgage lending costs due to rising interest rates in the United States during 2018.
As for the technical picture of the currency pair EUR / USD, the situation has changed a bit. Buyers for the resumption of the upward movement in risky assets require a breakthrough of the intermediate resistance level of 1.1375, but the main goal will be the test of a maximum of 1.1410. If the bulls are not in a hurry to enter the market, the option of re-lowering to the support area of 1.1340 and even updating the minimum of 1.1305 is not excluded.
The Canadian dollar fell in tandem with the US dollar after the release of a weak report on the wholesale trade in Canada, which fell more than expected in November, completely offset the growth for the previous month. The main decline was noted in the sale of machinery and equipment.
According to the Bureau of Statistics of Canada, wholesale sales fell in November 2018 by 1.0% compared with October and amounted to 62.99 billion Canadian dollars. Economists had expected a decline of 0.1%. In volume terms, in November wholesale trade declined by 1.2%. Compared to November 2017, wholesale trade increased by 1.2%.
Supplies in manufacturing Canada also declined in November. All because of failure in sales of petroleum products. According to the National Bureau of Statistics of Canada, sales in the manufacturing sector in November fell by 1.4% compared with the previous month and amounted to 57.31 billion Canadian dollars, while economists had expected sales to fall by 1.0%.
The material has been provided by InstaForex Company - www.instaforex.com