The tone of economic data today has been soft globally but strong in the United States. Earlier data on retail sales was solid and that was followed by strong industrial production and now a rise in homebuilder sentiment.
The latter has cleared the way for a rise to the best levels of the day in the US dollar on virtually every front. Home building is particularly interesting given that Home Depot shares are down 2.1% today after announcing soft Q1 revenue. The thinking, perhaps, is that the sentiment number is more forward-looking and that Americas will resume spending on renovations, especially with so many people now locked into 30-year mortgages.
Greg highlighted USD/JPY hitting the highest levels since May 3 but the euro is also looking toppy in the big picture and that would be particularly true if 1.0825 gives way.
