Existing home sales in the US rose to 5.39 million (annualized). They were expected to stand at 5.15 million in July 2013 after 5.06 in June (revised down from 5.08 million). This 6.5% rise puts the pace of sales at the highest level in over 3 years. Most home sales are of existing home, yet these transactions trigger less economic activity than the sales of new homes.
The US dollar was somewhat stronger before the publication, with EUR/USD trading below 1.34 and USD/JPY at 97.60. GBP/USD retreated from its move above 1.57. The dollar is marginally higher. It seems like the markets were partially pricing in a good figure.
This is the first significant publication of the week and the most important one is coming up today as well: the FOMC Meeting Minutes for the August meeting. The Fed didn’t change its policy, but the internal discussions could reveal intentions regarding the next meeting in September, when the central bank could taper its bond buys.
Recent data has been taper supportive. The expectations towards QE tapering have already caused a bond rout in emerging markets: Indonesia, Thailand, Vietnam and India in particular are suffering from higher yields and weaker exchange rates.
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