The dollar was virtually unchanged holding its ground at 7 month highs against its peers today following the release of varied US housing figures leading up to the release of FOMC minutes as the market continued to expect the Fed to increase rates in December lending further support to the greenback.  US housing starts declined 11% from 1.191 million units in September to 1.060 million in October while experts had forecast a 3.9% drop to 1.160 million.  US building permits issued increased by 4.1% from 1.105 million in September to 1.150 million matching predictions.  Minutes from the Fed’s meeting held in October revealed strong support amongst key officials for a December rate hike.  The central bank also highlighted indications of a lowered outlook for long term growth of the US economy.  The dollar lost some ground on the back of the minutes which were more dovish than expected.  

   
The euro strengthened against the dollar with the pair up 0.12% trading at 1.0654 off its session low of 1.0616 after having come off its session high of 1.0691 reached earlier in the day.  The pair is still near its 6 month low of 1.0630 reached yesterday.  The euro’s advances were curtailed as the market predicts the European Central Bank will ramp up its stimulus program and reduce its key interest rate to below zero in December.  The euro was also weighed down over fear that recent terrorist attacks in Paris could dampen already lagging economic recovery within the euro zone.  Following the Fed’s meeting minutes release the euro dropped to a new 7 month low however was soon to rebound surpassing previous levels. 

 

The pound held its ground against the dollar with the pair trading at 1.5235 coming off a revisited session low of 1.5187 after having come off its session high of 1.5248 reached earlier in the day.  The market speculates the pair could fall below its 1.50 handle for the first time since April especially if US jobs data for December surpasses forecasts.   

 

The yen held its ground against the dollar with the pair trading at 123.53 coming off its session high of 123.60 after having come off its session low of 123.22 reached earlier in the day.  The pair was range bound again within less than half a big figure.  Turmoil in France has led to increased safe haven demand for the yen.  The yen had weakened against the dollar leading up to US open as the pair remained bid on speculation the Fed will finally increase its key interest rate in December. 

 

The Australian, New Zealand and Canadian dollars weakened against the greenback.  The Aussie declined 0.23% against the dollar with the pair trading at 0.7094 off its session low of 0.7072 after coming off its session high of 0.7117 reached earlier in the day.  The kiwi lost roughly 0.3% against the dollar with the pair trading at 0.6454 coming off its session low of 0.6428 after having come off its session high of 0.6489 reached earlier in the day.  The loonie slipped 0.15% against the greenback with the pair trading at 1.3341 off its session high of 1.3368 after having come off its session low of 1.3297 reached earlier in the day.  Oil prices continue declining as much as 1% today as US supplies reach record highs. 

  
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