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Tuesday, December 20, 2005

Bullish Day For The Dollar

The Dollar was strong today, primarily on the back of a surprisingly firm housing start's number for November. The stellar number, up 5.3% for November, gave markets hope that housing markets were still strong, and not peaking as many commentators have been predicting. As housing activity is strongly correlated with consumer spending and household spending constitutes the majority of GDP, the news was bullish for the Dollar.