Dollar Surges against Euro after Confidence among US Homebuilders Surges

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Dollar Surges against Euro after Confidence among US Homebuilders SurgesThe dollar advanced versus the euro after US homebuilders’ confidence touched the strongest level in seven months, indicating the economy is growing stronger.

The US currency rose 0.3 percent to trade at $1.3362 per euro at 1:21 p.m. in New York. The dollar also rallied 0.2 percent to 102.57 yen while the Japan’s currency surged 0.1 percent to 137.06 per euro.

“The housing number was a positive surprise, that certainly helped to give a little boost to the dollar,” Eric Viloria, a New York-based strategist at Wells Fargo & Co., told Bloomberg News. “Yellen has been the more dovish member of the Fed. She’ll look to strengthen the view that a high degree of accommodation is appropriate” in Jackson Hole.” Federal Reserve officials, along with central bankers from other countries, are due to meet in Jackson Hole, Wyoming this week.

Meanwhile, the pound gained the most in a month against the U.S. dollar after the Bank of England Governor Mark Carney signaled that policy makers may increase interest rates before wages grow. The sterling jumped 0.2 percent to $1.6730, the biggest advance since July 15. The UK currency jumped ahead of the scheduled release of BOE’s minutes of its August Monetary Policy Committee meeting on Aug. 6-7, where officials retained the target interest rate at 0.5 percent.

The homebuilders’ sentiment, which is jointly compiled by the National Association of Home Builders and Wells Fargo, rose to 55 in August compared to 53 in July.

The ruble accelerated after Russia widened the currency’s trading band from 7 rubles to 9 rubles. The ruble surged 0.3 percent versus a basket of dollars and euros to 41.4922. To register for a free 2-week subscription to ForexMinute Premium Plan, visit www.forexminute.com/newsletter.

To contact the reporter of this story; Jonathan Millet at john@forexminute.com