Full index of posts »
Latest Followers
Posts by Themes
dollar,
EUR/USD,
adp,
Afghanistan ,
Ascending Triangle Pattern,
at t,
AUD,
aud,
aud/nzd,
AUD/USD,
audjpy,
aussie,
Aussie dollar,
Australian Dollar,
Australian dollar,
Bernanke,
BOE,
BoE,
bp,
Buy Signal,
Cable,
cable,
cad,
CAD,
Canada,
Central Bank Meetings,
chf,
Chinese Interest Rates,
Commodites,
Commodities,
conference board,
CPI,
Crude Oil,
crude oil,
Crude Oil Inventories Report,
Crude Oil Trading,
Currency Intervention,
divergence,
DJI,
Dollar,
dollar,
Dollar Rally,
Double Crossover Method,
ECB,
elections,
EUR,
eur,
eur usd,
EUR/CHF,
EUR/GBP,
Instablogs are Seeking Alpha's free blogging platform customized for finance, with instant set up and exposure to millions of readers interested in the financial markets. Publish your own instablog in minutes.
View Forexyard's Instablogs on:
Be Prepared! U.S. New Home Sales Report Tomorrow at 14:00 GMT
What is the U.S New Home Sales Report?
The U.S New Home Sales report is a leading economic indicator used to measure the number of new homes that were sold during the previous month. It is a leading indicator of housing demand and economic health because the sale of a new home impacts a wide variety of consumer spending figures, such as renovations for the home purchased, and mortgages being taken out to purchase the home.
Since new homes sales continue to be a very important indicator for the recovery of the U.S housing sector, this report tends to have an extremely large impact on the forex market.
How this Survey Can Help the USD
Expectations for this month are suggesting that the U.S. New Home Sales report will show that home sales rose to 420K in April, reflecting a 9K increase from March, indicating the U.S. recovery was strengthening before the European debt crisis rattled global financial markets. While the recovery from the worst housing slump since the Great Depression has been uneven, indications mount that American people are beginning to buy more homes and we are experiencing the early stages of a lasting recovery. A figure on par or above expectations will likely boost the USD further, particularly in light of concerns the European recovery will lag the U.S recovery. An exceptionally good result may push the EUR/USD pair below the previous low of $1.2144.
How this Survey can Hurt the USD
If the actual figure is lower than forecast, traders are likely to see the USD depreciate against its currency pairs and crosses. The current sharp erosion in financial conditions, brought on by the continuous Euro-Zone debt crisis, has left investors highly susceptible to disappointments for the path of economic recovery. With the current revival of the U.S housing sector being very shaky and largely driven by the timing of a government homebuyer tax credit worth as much as $8,000, results lower than forecasted may rattle investors confidence in the U.S economy. The USD might depreciate, particularly against the Yen, the ultimate safe heaven currency.
Disclosure: no positions