A directionless start to the week for the $ and a dead calm on Forex.
Except for the Yen, which rose solo by +0.4% against the dollar and the euro.

Euro/$ parity remained unchanged at 1.0940, while the Swiss franc gained 0.15% (also against the E and the $).

The Dollar-Index ended marginally lower, due to the firmness of the Yen (-0.06% at 103.38), at the end of a session marked by virtually no variations... much the same atmosphere as on Wall Street.

Forex traders then gave an unemotional welcome to the -5.6% fall in new single-family home sales in the United States (to 679,000 units at an annualized rate), following an 8.6% jump in September.

The Commerce Department also reported that the median house price stood at $409,300 (down sharply), and the average price at $487,000 (an all-time record).
The stock of new homes for sale now stands at 439,000, representing a reserve of around 7.8 months at the current rate of sales.

Overall, growth is slowing more in Europe (Germany in recession, +0.4% expected in 2024) than in the United States, where consumer spending continues to underpin activity.

Investors will be keeping a close eye on a number of important indicators this week, starting with inflation in the euro zone, to be published on Thursday: it is expected to decline further compared with the previous month.
The consensus is for a decline to 4% in core data, compared with 4.2% in October.

US statistics will also be carefully analyzed on Thursday afternoon: the 'core' PCE index for October, which remains the 'benchmark' measure of inflation for the US Federal Reserve, could be closer to 4%.

Household spending in the US, also due on Thursday, will give an insight into consumer propensity to spend as the year draws to a close, while retail sales declined in October (but rebounded strongly over the weekend).

Finally, the ISM manufacturing index due out on Friday will reveal whether the US economy will continue to hold up well.


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