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The US Dollar Index Was Flat after a Mixed Data Release

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Dec. 4 2020, Updated 10:53 a.m. ET

US dollar index ended the day on flat note

The US dollar index measures the strength of the US dollar against other major currencies. It was trading on a flattish note on January 20, 2016, with a slight rise of 0.10% for the day. The mixed data in terms of housing and inflation ensured that no one-sided movement occurred in the index. The dollar index had gone to a high of 99.19 before closing the day at 99.09.

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Mixed housing data and CPI

The Census Bureau of the United States published the building permit numbers for December at 1.2 million, or 3.9% below November’s revised figures. Meanwhile, housing starts came out on a slightly negative note at 1.15 million against the expectation of 1.19 million. The report also indicated a rise in housing completions, as that came 5.6% above the revised November figures.

Also, the Bureau of Labor Statistics published the month-over-month Consumer Price Index (or CPI) for December at -0.1% against the expectations of no change in the status quo. The month-over-month core CPI rose by 0.1% against expectations of a rise of 0.2%.

Impact on the market

The mixed housing data had a negative impact on housing-related ETFs, with the SPDR S&P Homebuilders ETF (XHB) falling by 1.1%. The iShares US Home Construction ETF (ITB) also saw a significant fall of 1.1% on January 20, 2016.

Housing-related stocks were also on a downward trajectory, with Lennar Corporation (LEN) trading on a negative bias and falling by 0.76%. Toll Brothers (TOL) also posted significant losses, with a fall of 3.1% on January 20, 2016, and D.R. Horton (DHI) fell by 1.7%.

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