New home sales stand at an annualized 593K in September, marginally lower than 600K projected. In addition, the figure for August was revised down to 575K, making the most recent read a rise of 3.1%. Levels of sales are around the 9-year highs – pre-crisis levels.
The US dollar has been on the backfoot during most of the day, especially against the euro. EUR/USD recovered all the way to 1.0945 before stabilizing around 1.0925. There is no significant reaction to the news.
Sales of new homes were expected to edge down to 600K (annualized) in September after 609K back August (before revisions). This is a drop of 1%. Each sale of a new home triggers wider economic activity in comparison to a sale of an existing house.
Earlier, Markit’s flash services sector PMI surprised with 54.8 points, significantly better than 52.3 predicted.
Last week, existing home sales came out better than expected.
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