A small miss: 5.44 million against 5.57, a drop of 1.3% instead of an expected rise. The data is not shocking, but enough to push the greenback a few pips lower. A significant follow-through seems unlikely.
Markets are taking it easy, waiting for the bigger event which is the Jackson Hole Symposium at Wyoming.
Sales of existing homes were expected to rise by 0.9% to 5.57 million in July, up from 5.52 million annualized (before revisions). Most transactions are for second-hand homes, but the sales of new units have a wider economic impact.
The US dollar was quite stable in a dull day in August. Political trouble had already taken its toll on the greenback, but it calmed down.
Earlier this week, new home sales disappointed with only 571K. However, the figure for June was revised to the upside, to 630K. Markit’s PMIs were mixed.
The big event of the week is the Jackson Hole Symposium, but the key speeches are held very late on Friday: Yellen talks at 16:00 GMT, after Europe goes home for the day. Draghi talks at 19:00, just before the US closes.
More: EUR/USD: Overshoot; Technicals Point To A Tactical Retracement; Levels & Targets – Barclays
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