Existing home sales dropped to 5.29 million, well within expectations. They were expected to slide to 5.31 million (annualized) in September after a stronger 5.39 million in August. The latter figure was revised down from 5.48 originally reported. This is the first significant report in a busy week.
EUR/USD was somewhat lower before the release, at 1.3660. GBP/USD was around 1.6140. USD/JPY traded around 98.20. While the outcome was in line with expectations, the release provided an opportunity to reverse the strengthening of the dollar seen earlier. All in all, currencies maintained previous levels in anticipation of the Non-Farm Payrolls.
Most of the housing market consists of sales of existing (second hand) homes. On the other hand, construction of new homes triggers a lot of business activity. New home sales are scheduled for Thursday.
The most important figure, the NFP, is awaiting us tomorrow, October 22nd. See how to trade the Non-Farm Payrolls with EUR/USD.
