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New home sales jump to 546K – highest in 7 years

More good news from the housing sector:  new home sales rise to 546K, better than expected. April’s number was revised up to 534K. All good. This is the  highest since 2008 – 7 years. Revisions went back all the way to February. The  revisions mean that the rise is only 2.2% m/m.

The dollar is on the rise, extending the gains that Powell  generated.

At the same time, the Richmond Manufacturing Index hit 6 points, better than 3 expected. Beforehand, Markit’s flash manufacturing PMI dropped to 53.4 points, worse than 54.2 predicted.

Sales of new homes carried expectations to advance to 524K (annualized) after 517K in April (before revisions). Construction of new homes triggers a wide variety of economic activity, such as infrastructure investments, etc. There is a good correlation between construction and the wider economy.

Earlier, durable goods orders disappointed. However, the hawkish words from Fed member Powell boosted the US dollar.

Powell talked about a September liftoff and probably another move in December. This overshadowed the shortcoming in durable goods orders, including core data and revisions. Existing home sales beat expectations in yesterday’s release.

More:  EURUSD Can Decline Towards 1.1050 – Elliott Wave Analysis


Yohay Elam

Yohay Elam

Yohay Elam: Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I've accumulated. After taking a short course about forex. Like many forex traders, I've earned a significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I've worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts.