Attention on U.S. housing indicators and the direction of the dollar-yen exchange rate

Attention on U.S. housing indicators and the direction of the dollar-yen exchange rate

19.05.2026 New

In the U.S. currency market the previous day, as reports emerged that the U.S. had temporarily suspended its plans to attack Iran, easing concerns over the situation in the Middle East, the U.S. dollar remained resilient despite taking a breather from its recent gains.The USD/JPY pair traded within a range of 158.54 to around 159.07 before closing in the upper 158-yen range, with resistance around the 159.00 level likely to be a concern. On the downside, the focus will likely be on whether the 158.50 to 158.00 area acts as support. We will be watching today’s U.S. pending home sales index to gauge whether the U.S. dollar’s resilience will continue.

European currencies saw the pound recover against the dollar, supported by the IMF’s upward revision of the UK’s growth forecast, despite lingering political uncertainty in the UK. After fluctuating within a range of 1.3302 to 1.3449, the GBP/USD pair is currently trading in the 1.3410 range, and the immediate focus is on whether it can hold above the 1.3400 level.On the upside, the 1.3450 level is likely to be watched, while on the downside, the 1.3350 to 1.3300 range is likely to be in focus. UK employment data is scheduled for release today, and we will be watching the pound’s reaction to the labor market results.

Today’s economic indicators include Japan’s final March industrial production and March capacity utilization rate at 1:30 p.m., the March tertiary industry activity index, the UK’s March unemployment rate (ILO method) at 3:00 p.m.,April Jobless Claims, the Eurozone March Trade Balance at 18:00, the Canadian April Consumer Price Index (CPI) and March Housing Starts at 21:30, and the U.S. April Pending Home Sales Index at 23:00.The Canadian CPI is expected to rise 0.7% month-on-month and 3.1% year-on-year, while the U.S. Pending Home Sales Index is forecast to increase 1.3% month-on-month and 2.0% year-on-year. During New York trading hours in particular, the Canadian CPI and U.S. housing indicators are likely to drive market sentiment, so we should carefully monitor the reactions of the Canadian dollar, U.S. dollar, and Japanese yen.