Will U.S. housing data test the upside for the dollar-yen pair?

Will U.S. housing data test the upside for the dollar-yen pair?

18.05.2026 New

In the previous trading session, the U.S. dollar held firm amid rising U.S. interest rates, as concerns about inflation intensified against a backdrop of uncertainty surrounding the situation in the Middle East and rising crude oil prices. The dollar/yen pair fluctuated within a range of 158.29 to 158.86 before closing near 158.77, continuing to trade in the upper 158-yen range.Currently, the 159.00 level is likely to be viewed as an upper resistance, while the focus will be on whether the 158.30 to 158.00 range will act as support on the downside. We will be watching today’s U.S. NAHB Housing Market Index to gauge whether the upside potential for the U.S. dollar will expand.

European currencies were weighed down by a strong U.S. dollar and uncertainty surrounding British politics, causing the pound to fall against the dollar. The GBP/USD pair traded within a range of 1.3314 to 1.3412 before closing around 1.3325, dropping to the low 1.3300s.The immediate focus is on whether the pound can recover to the 1.3350 level, with resistance likely around 1.3400 and support around 1.3310 to 1.3300. As the dollar-led market trend persists, we will be watching to see if the pound can find a bottom.

Today’s key economic indicators include China’s April retail sales and industrial production at 11:00, Turkey’s May consumer confidence index at 16:00, the U.S. May NAHB Housing Market Index at 23:00, and U.S. March foreign securities investment at 29:00.China’s retail sales came in at 0.2% year-on-year, and industrial production at 4.1% year-on-year, both falling short of market expectations. The U.S. NAHB Housing Market Index is expected to come in at 34, which is likely to provide insight into sentiment in the U.S. housing market. While major economic indicators are limited at the start of the week, Chinese data and U.S. housing-related indicators are likely to influence the economic outlook, so we should carefully monitor the reaction of the U.S. dollar and the pound.