No surprises in US existing home sales: an annual level of 4.59 million in March. The US was expected to report a level of around 4.57 million sales (annualized) in March after posting a similar figure of 4.60 million in February (before revisions). Most transactions in the housing market are for existing, second hand homes.
Before the publication, EUR/USD traded around 1.3810, GBP/USD was floating around 1.6820 and USD/JPY just under 102.50. No big changes are recorded after the release.
At the same time, the Richmond Manufacturing Index, a minor indicator, carried expectations for a rise from -7 to 0 points but it surprised with +7 points. And in the euro-zone, consumer confidence was expected to remain at the post crisis high of -9 points. The negative number represents pessimism. The actual figure came out at -8.7 points, within expectations.
Earlier, the official US House Price Index released by FHFA for the month of February rose by 0.6% as expected. The Case Shiller index carries more weight regarding changes in prices of houses.
Trading volume is still somewhat low as traders return from the long Easter weekend in many parts of the world. More:Â Dissecting FX Themes.
Things are expected to heat up tomorrow with the release of new home sales. While they are only a small portion of the market, every sale of a new home triggers a larger amount of economic activity: roads, infrastructure, etc.
