Already benefiting from ECB plans to beef up its balance sheet over the next month, and news of the lowest U.K. inflation in more than half a century, the greenback garnered more support from robust news on U.S. housing.
Housing starts fared the best in more than seven years in April, soaring 20.2 percent to 1.14 million units, easily crushing forecasts of 1.02 million units. Building permits, a gauge of future housing activity, and considered less volatile than housing starts, also topped forecasts with a 10.1 percent increase to 1.143 million, outpacing forecasts of 1.060 million units.
The solid prints were consistent with an economy starting to rebound from its listless start to the year, keeping alive expectations for a Fed interest rate hike this year, the narrative responsible for much of the greenback's out-performance over the past year.
