END OF DAY REPORT JUNE 20th

SUMMARY

The writing may have been on the wall after Monday’s much better than forecast NAHB housing market index, but the Dollar and DXY derived upside momentum from a surge in US housing starts that surpassed even the most optimistic estimates. In fact, the 21.7% m/m rise was the largest since October 2016 and was supplemented by a 5.2% increase in building permits. The index reclaimed 102.500+ status initially before setting a new session high at 102.790, even though USTs bounced firmly from post-data lows amidst reports of cash buying on dips and models chasing the offer as yields held key technical and psychological levels, such as the 3.72-75% zone in 10s.