Forex – CFD Weekly Microanalysis - US New Home Sales

  • Date: Friday, 23.6.2017
  • Time: 15:00 GMT+1

  • Indicator: US New Home Sales


    US New Home Sales

  • Previous: 569K
  • Expected: 597K
  • US New Home Sales is an economic indicator, which records sales of newly constructed residences in the United States. The United States Census Bureau publishes new home sales statistics monthly on their website. Statistics are reported as both unadjusted monthly rates and seasonally adjusted annual rates. Because new home sales trigger consumption, they have significant market impact upon their release. New home sales also serve as a good indicator of economic turning points due to its consumer income sensitivity. Generally, when economic conditions slow down, new home sales serve as an early indicator of a potential depression. The report is published on a monthly basis.

    A higher than expected reading should be taken as positive/bullish for the USD, while a lower than expected reading should be taken as negative/bearish for the USD.

    Comment:

    April’s report on US New Home Sales pointed to a reduced number of new homes sold in the US. At the moment when this report was released, EUR/USD currency pair dropped by 0.41%, which was not in line with the logic as the data came in negative. Better-than-expected PMI data could have served as one major reason why the US dollar (USD) rose agabnist its major conterparts at that particular moment.

    A rising USD usually affects the price of gold in a negative manner, so it should not be a surprise that gold prices dropped by 0.94% at that particular moment. A strong USD has a negative impact on crude oil prices, as well. However, this negative correlation failed to prove accurate after this event; crude oil prices were reported to trade up 0.80% due to positive sentiment prevailing within the oil markets, this following rumors that OPEC and non-OPEC members plan to extend the deal for oil production cut until March 2018.

    Current forecasts suggest May’s figure on US New Home Sales to be 597,000. The report is due out on Friday, 23 June, 2017.


    The following illustrates price movements of three analysed instruments after previous releases.

    EUR/USD (Euro vs US Dollar Currency Pair)

    Microanalysis EUR/USD 1

    Price movements in the EUR/USD currency pair following the release of the previous report:

    Microanalysis EUR/USD 2 * Hourly chart.

    Gold Futures

    Microanalysis GOLD 1

    Price movements in gold futures following the release of the previous report:

    Microanalysis GOLD 2 * Hourly chart.

    Crude Oil (CL)

    Microanalysis CRUDE OIL 1

    Price movements in crude oil following the release of the previous report:

    Microanalysis CRUDE OIL 2 * Hourly chart.

    Risk Warning: Trading CFDs carries a high level of risk. Your capital is at risk.