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.
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%.