US Existing Home Sales ticked up to an annual pace of 4.62 million units. This is from 4.47 million last month. This is within expectations.
EUR/USD is reacting positively to the news, moving up from the lows of the day, but well within the recent range. This is a “risk on” reaction. USD/JPY is on the rise as well.
Most of the market is in existing homes, making this indicator important for the sector and for the economy, which is still recovering from the boom and bust.
The vast amount of foreclosed homes is still weighing on prices, but there is a sense that the market has reached a bottom, perhaps also in prices. Will it rebound strongly from the bottom? Probably not.
The recovery has been “painfully slow” so far – there is a light at the end of the tunnel, but the tunnel is long.
Another US indicator released is the Richmond Manufacturing Index, which disappointed by falling from 14 to 4, much lower than a slide to 12 that was predicted.
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