Attention Turns to U.S. Housing Indicators and the Outlook for the Dollar-Yen Exchange Rate

Attention Turns to U.S. Housing Indicators and the Outlook for the Dollar-Yen Exchange Rate

19.05.2026

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 about the situation in the Middle East somewhat, 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; resistance near 159.00 is likely to be a key factor.On the downside, the focus will likely be on whether the 158.50 to 158.00 range 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.

Among European currencies, the pound rebounded against the dollar, supported by the IMF’s upward revision of the UK’s growth forecast, despite lingering political uncertainty in the UK.The GBP/USD pair fluctuated within a range of 1.3302 to 1.3449 before settling in the 1.3410 range; the immediate focus is on whether it can hold near 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 a key focus. UK employment data is scheduled for release today, and we will be watching to see how the pound reacts to the labor market results.

Today’s economic indicators include Japan’s final March industrial production figures 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 at 15:00, the Eurozone’s March trade balance at 18:00, Canada’s April Consumer Price Index (CPI) and March housing permits at 21:30, and the U.S. April pending home sales index at 23:00.Canada’s CPI is expected to come in at 0.7% month-over-month and 3.1% year-over-year, while the U.S. Pending Home Sales Index is forecast to rise 1.3% month-over-month and 2.0% year-over-year. During New York trading hours in particular, the Canadian CPI and U.S. housing indicators are likely to drive market sentiment, so we will carefully monitor the reactions of the Canadian dollar, U.S. dollar, and Japanese yen.