The dollar gets another positive: sales of new homes jumped to 504K (annualized) in August. This is a big rise from an upwards revised 427K in July – a hefty 18% leap. This is a new 6 year high. It is important to note that this figure is often volatile.
The USD is certainly riding higher on the outcome, moving up across the board. EUR/USD is at a fresh new low of 1.2774, GBP/USD is at 1.6350 and also USD/JPY is emerging from 108.80.
The number of US new home sales was expected to rise to 432K (annualized) in August from 412K in July (before revisions). Sales of new homes trigger wide economic activity around them. The figure has a big impact despite the fact the most sales are of second hand homes.
Towards the publication, EUR/USD fell sharply and traded below 1.28. Also the pound and commodity currencies suffered, but USD/JPYÂ was stable around 108.75.
Existing home sales fell a bit below expectations, in a release earlier in the week.
Tomorrow we have jobless claims and durable goods orders. GDP follows.
