US pending home sales dropped by 0.4% in June. As they were expected to drop by 1.1%after rising 5.8% in May (revised down from +6.7%), the result is marginally better than expectations. Housing has led the US recovery, but this specific figure is quite volatile and isn’t always the best indicator.
The US dollar has been on the rise prior to the publication, with EUR/USD falling below 1.3250 and USD/JPY rising back above 98. The market is not really reacting to this publication.
Bigger releases are scheduled for later in the week: US GDP, ISM Manufacturing PMI, ADP NFP and of course the all important Non-Farm Payrolls.
Further reading:Â Fed Chair impact on USD: Summers up, Yellen down
