A second disappointment from US economic indicators today: sales of new homes stand at 412K. The United States was expected to report a rise to 426K sales (annualized) of new households in July. June saw 406K (before revisions), a figure that was disappointing at the time. June’s number was now revised to the upside, to 422K, making July’s number a drop of 2.4%.
The US dollar was generally stronger before the publication, still enjoying some weekend gaps. This number sends EUR/USD only marginally higher to 1.3199, GBP/USD is stable around 1.6586 and USD/JPY is at 103.96. — The reactions to both misses is relatively muted for now.
The first disappointment came from Markit’s services PMI, that slid more expected. Despite these two misses, the US economy looks good and the dollar remains strong.
Tomorrow we’ll get a look at the US consumer. See how to trade the CB consumer confidence with GBP/USD.
Last week’s existing home sales beat expectations with 515K. The majority of the market belongs to second hand (existing) homes, but sales of new homes generate more economic activity in infrastructure works, etc.
The greenback has been on a roll following stronger data, more hawkish FOMC minutes and no extreme dovishness from Janet Yellen.