The US Dollar (USD) inched higher against the Canadian Dollar (CAD) this morning, followed by the stats released by the National Association of Realtors United States. In the last week, the US Dollar kept declining due to some unfavorable economic releases. However, it has now started recovering again. As per the stats released, the figure concerning the existing home sales remained 5.63, it is short of two points to meet the economist’s expectation. However, it remained lower than the figure reported for the previous month.
The existing home sales, provide an estimated value of the conditions of the housing market. Because the housing market is seen as a critical factor for the US economy, this causes some uncertainty for the US dollar.
Being a sensitive indicator, the existing home sales play a significant role in shaping up the US economy. Reading higher than the previous one shows a bullish market for the US Dollar (USD) whereas a lower reading indicates inflation and alarms devaluation of the same.
Since the US Dollar succeeded in rising up over the last week, it is anticipated that it will continue its journey following the bullish trend. The consensus of the market leaders also seems on a positive edge with a predicted value of 0.2%.
Considering the overall price movement of the pair for the last couple of days, USDCAD at current levels may be a good decision. However, traders looking for a long term position may also try their fate for sure.