The US Pending Home Sales Report is an important leading economic indicator, considered by analysts as a excellent measure of consumer demand in the housing sector. A higher reading than forecast points to stronger activity in the housing industry and is bullish for the dollar.
Here are all the details, and 5 possible outcomes for USD/CHF.
Published on Monday at 14:00 GMT.
The Pending Homes Sales Report provides analysts and investors with important information about the housing sector. As a house is likely to be the largest purchase that a consumer will make, this indicator gives is important in determining consumer confidence and the health of the economy.
The reading climbed up a solid 2% in February. The markets are expecting a lower increase in March,with a forecast of a 1% increase.
Sentiments and levels
The Swiss economy has been posted some stronger numbers last month, particularly in Industrial Production, which jumped 7.9% last month. However, the markets did not react favorably, and USD/CHF remains choppy. We may see more of this trend this week. So, the overall sentiment is neutral on USD/CHF towards this release.
Technical levels, from top to bottom: 0.9250, 0.9204, 0.9120, 0.9050, 0.8924, and 0.8850.
Within expectations: 0.4% to 1.6%: In such a case, the USD/CHF is likely to move within range, with a small chance of breaking higher.
- Above expectations: 1.7% to 2.3%: An unexpected reading into positive territory can send USD/CHF above one resistance line.
- Well above expectations: Above 2.3%: A sharp increase in housing sales could push the pair above two or more resistance lines.
- Below expectations: -0.3% to 0.3%: A reading lower than forecast could send USD/CHF below one support level.
- Well below expectations: Below -0.3%: A sharp decline would signal contraction in the housing sector. In such an outcome, the pair could drop below two or more support levels.
For more on the Swiss franc, see the USD/CHF forecast.