Better than expected: sales of existing homes rose to an annualized level of 5.35 million in May, above 5.27 million. Last month’s figure was upgraded to 5.09 million from 5.04 originally reported.
This is good news for the dollar, which is ticking a bit higher on the news against many currencies. However, the beat is not huge, so the market effect could be limited.
This figure joins other “better than expected†figures for the economy in May and April. The theory of a spring rebound after a tough first quarter is gaining more ground with this publication.
Sales of existing homes form the larger share of the market, but they trigger less economic activity than sales of new homes – a figure that is released tomorrow. Also tomorrow, we will hear about the US durable goods orders, which have also been on a recovery path.
EUR/USD is more affected by every headline regarding the Greek crisis, but fresh optimism is generally supporting the pair.
In our latest podcast we digest the dollar dove dive, update on Greece and preview next week’s events.
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