Friday saw some slightly disappointing US data but it did little to knock the US dollar off its perch following the Federal Reserve’s interest rate hike announcement and their ‘dot plot’ suggesting that interest rates may increase three times next year.
Housing starts fell more than expected in November, tumbling from a nine-year high as construction activity slowed across the board.
Thursday is a data-heavy day this week, with durable goods, jobless claims and the final third quarter GDP reading. All three data points are key barometers for the expected three rate hikes.
In addition to this, we also have the existing and new home sales as well as consumer sentiment. We could see increased volatility as market participants close out trades before the end of the year.
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