Housing Market Index as forex indicator

The housing market index is yet another important economic report which is issued by the government. The report contains data from over 300 home builders and through this the demand for the new homes is measured.
The range of index starts from 0 and goes up to 100. When the demand is stronger, the index goes above 50 points, whereas when the demand is lower the index stays below 50 points. Being on the level 50 means that there is an average demand.
The index is usually used with the combination of other index like “housing start” to measure the economic growth.
The economic indicators are used to measure the economic health of a country. If there is a change in the numbers of the report, it would directly affect the currency of the country. Each of the economic indicators is attached to its own level of the market which can be affected.
Beyond the data itself, the expectations of the market is itself very important. Market will go up if the numbers are more on the positive side. On the other hand, in case if the numbers are too negative it will push the market down.