Dollar Stumbles on Weak Housing Data, Sterling Rebound

Investing.com – The dollar fell against its rivals Monday after soft housing data pointed to a continued slowdown in the U.S. housing market.

The U.S. dollar index, which measures the greenback against a trade-weighted basket of six major currencies, fell by 0.29% to 96.05.

The National Association of Home Builders/Wells Fargo Housing Market Index fell eight points to 60 in November. That was the lowest reading since August 2016, though a reading above 50 is still considered positive.

Confidence fell across present single family sales, future, as well as prospective buyers, with all four geographic regions showed a slowdown, BMO said in a note.

"This only emphasizes the cooling of the US housing market as higher mortgage rates and slowing demand are felt by home builders."

The weaker housing data arrived as investor expectations for December rate hike has trickled lower over the past week even as New York Fed President John Williams said Monday the Federal Reserve would continue hiking rates a gradual pace.

About 69% of traders expect the Federal Reserve to raise rates in December, down from 76% according to Investing.com's Fed Rate Monitor Tool.

The dollar was also pegged back by a rebound in the pound as the no-confidence threat against UK Prime Minister May eased after key members of her cabinet held off submitting a letter of non-confidence in the prime minister to see whether the Brexit deal would get voted down in parliament.

GBP/USD rose 0.14% to $1.2854. after falling to session low of $1.2797.

EUR/USD rose 0.32% to $1.1450, while USD/JPY fell 0.30% to $112.48.

USD/CAD, meanwhile, rose 0.33% to C$1.3193, though gains in the pair were limited by uptick in oil prices supporting the loonie.

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