Dollar unfazed as home prices decrease to the lowest level since January 2017

US house prices are still gaining but at the lowest level since January of 2017.  The S&P CoreLogic Case-Shiller U.S. National Home Price NSA Index, covering all nine U.S. census divisions, reported a 5.5% annual gain in September, down from 5.7% in August.  The report noted that one factor contributing to the weaker housing market is the recent increase in mortgage rates. Currently the national average for a 30-year fixed rate loan is 4.9%, a full percentage point higher than a year ago.

The softer housing price data along with last week’s disappointing NAHB housing market index and declining building permits and housing starts data confirm the continuing trend of a slowdown in housing.

Price action on the 60-minute USD/CHF shows that recent bullish channel has been in place since the middle of last week is finding tentative resistance from the parity level.   If bullishness accelerates, major resistance will come from the November 13th high of 1.0127.  To the downside, key support will come from the 0.9820-0.9890 region.

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Ed Moya

Ed Moya

Senior Market Analyst at OANDA
With more than 20 years’ trading experience, Ed Moya is a market analyst with OANDA, producing up-to-the-minute fundamental analysis of geo-political events and monetary policies in the US, Europe, the Middle East and North Africa. Over the course of his career, he has worked with some of the world’s leading forex brokerages and research departments including Global Forex Trading, FX Solutions and Trading Advantage. Most recently he worked with, where he provided market analysis on economic data and corporate news. Based in New York, Ed is a regular guest on several major financial television networks including BNN, CNBC, Fox Business, and Bloomberg. He is often quoted in leading print and online publications such as the Wall Street Journal and the Washington Post. He holds a BA in Economics from Rutgers University. Follow Ed on Twitter @edjmoya ‏
Ed Moya