US existing home sales rose to 5.48 million (annualized). Theywere expected to stand at 5.27 million (annualized) in August, after 5.39 million in July (before revisions). The Philly Fed Manufacturing Index jumped to a high of 22.3 points. It carried expectations of a rise from 9.3 to to 10.2 points. Markets are still digesting the big FOMC surprise that saw the Fed NOT tapering QE. Nevertheless, economic indicators still have a significant impact.
EUR/USD traded around 1.3550, rising from the post-jobless claims drop. USD/JPY continued rising, and traded around 99.40 before the release. The dollar moved up immediately after the release, but erased the small gains shortly after.
Both figures are positive surprises, with the Philly number really standing out. However, the echoes from the FOMC meeting are still loudly heard.
Also the CB Leading Index advanced more than expected: +0.7% instead of +0.6%, but last month’s number was revised to the downside to 0.5%.
Earlier jobless claims came in at 309K ,well below expectations, with the 4 week moving average standing at the lowest levels in nearly 6 years.
Should the Fed have tapered with all this positive data? Maybe they will taper QE in October.
For more about the big event, see the Post FOMC Video Rundown
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