Source: ForexYard
Reports on manufacturing and housing this week will probably show evidence that the recession- stricken U.S. economy is bottoming out. The U.S housing recession that triggered the credit crisis and global slump is showing signs of bottoming as sales and construction have stabilized near historically low levels.
A Commerce Department report tomorrow may show housing starts last month rose 5.9% to a 485,000 annual pace, while Building Permits report, used as a predictor of future construction, may show builders began work on more houses as sales steadied and consumer prices rose. The data will be released Tuesday at 12:30 GMT.
In case the Housing Starts and Building Permits data will decrease below the expectations, the U.S dollar may weaken against its major rivals; the EUR and the British Pound. However, if the numbers will come in line with the expectations or higher, traders will see the USD trading become highly volatile.
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