Economists have been watching news from the US housing market even more thoroughly. Vigorous construction growth and rising housing prices are believed to be explicit signs of economic recovery.
Yesterday the data released by the US Department of Commerce found out that even though the number of the US building permits grew by 7.9%, the housing starts decreased by 4.8% in May. The figure fell short of the prediction: analysts had expected a rise in the indicator by 0.7%.
The news suggests that the US economy still looks too languish, so talks about its revival appear to be premature. In addition, according to experts, it may take a couple of years or even more for the US housing market to regain its pre-crisis dynamics. The only question is when exactly a positive trend starts.
What we have now is the feeble statistics affecting the American currency.
On Tuesday the USD index ticked lower by 70 points against the currencies of the US major trade partners. It came in at 81.20 points.
The US dollar is also being affected by the possibility of the Fed introducing another stimulus plan. Today, at the end of the 2-day meeting, the FOMC is to announce a decision on the interest rate.