U.S. New Home Sales Surged to Highest Level Since 2007

U.S. New Home Sales Surged to Highest Level Since 2007

U.S. dollar rose slightly as new U.S. single-family home sales showed a sharp pick-up in July to the highest level in almost nine years. New home sales increased 12.4% to a seasonally adjusted annual rate of 654k, the fastest since October 2007, the commerce Department said yesterday.

U.S. dollar index settled at 94.50 pips, thanks to such data.

Gold settled at $1,340 as New U.S. single-family home sales unexpectedly rose in July. From a technical point of view, the yellow metal could trade in a limited range in anticipation of Janet Yellen's speech this Friday, which could bring the precious metal to $1,330.

Sterling spiked against USD and settled above $1.32, the highest level in three weeks as orders for UK manufacturing exports hit a two-year peak in August, after a ‘Brexit’ vote. On the other hand, the weaker GBP also boosted price expectations to their highest in over a year.

The Pound could touch $1.33 during the course of the day.

On Tuesday, despite good data of German Manufacturing PMI, Euro failed to manage its gains vs. USD and traded at $1.13.

On Tuesday, oil prices rose by 2% and U.S. crude settled above $48. From a technical point of view, Crude could decline to support level of $47.50 in anticipation of U.S. inventories’ report.

The most important economic events:

  • USD MBA Mortgage Applications (AUG 19): (GMT 13:00) – Medium – Forecast (N/A) – Previous (-4.0%).
  • USD House Price Purchase Index (QoQ) (2Q): (GMT 15:00) – Medium – Forecast (N/A) – Previous (-1.3%).
  • USD House Price Index (MoM) (JUN): (GMT 15:00) – Medium – Forecast (0.3%) – Previous (0.2%).
  • USD DOE U.S. Crude Oil Inventories (AUG 19): (GMT 16:30) – Medium – Forecast (-850k) – Previous (-2508).

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