FXstreet.com (Barcelona) - Construction activity fell against expectations in the U.S in July, as starts of new houses dropped 1.0%, instead of the 2.7% increase forecasted by the experts; June's housing starts have been revised to a 6.5% increment. The Dollar and yen have risen immediately after the release of housing data.
Furthermore, the outlook for the construction sector does not seem much brighter, as building permits have declined 1.8% in July, following increases by 10.0% and 4.0% in June and may respectively.
GBP/USD, which was trading right below intra-day high at 1.6480, has dropped to levels below 1.6450, reaching 1.6425 minutes after the release of Housing Starts.
USD/JPY has extended pullback from 95.30 high, the Dollar has dropped from levels right above 95.00 to 94.65 minutes after housing data was released.
EUR/USD, which was struggling to hold above 1.4100 has dipped to 1.4080 immediately after housing data was released, although resistance levels at 1.4085 has proved strong enough so far and has sent the pair back to levels right at 1.4100 at the moment of writing.