Existing Home Sales at 5.02 million, Philly Fed Index

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The number of existing home sales in the US rose to an annualized level of 5.02 million. A figure of 4.88 million was expected after last month’s 4.76 million (after revision). This is a rise of 5.9%.

The Philly Fed Manufacturing Index rose from -10.7 to +8.1 in December. This is a very early indicator. A score of -2.2 was expected. Both figures exceed expectations, and the jump in the Philly figure to a positive number is certainly encouraging.

In addition, the official House Price Index for October rose by 0.5%, much better than 0.2% that was expected. The CB Leading Index dropped by 0.2%, as expected.

The housing sector continues to be the leading sector in the US economy, while manufacturing lags. Earlier, the US reported higher GDP growth for Q3: 3.1% in the third and final release, which exceeded expectations. Jobless claims rose to 361K, as expected.

There are worries about the fiscal cliff: after talks had already progressed, a recent blame game broke out between the two sides. This has boosted the dollar on risk aversion. However, the positive figures countered the worries and pushed the dollar higher on risk appetite.

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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 the 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.