U.S. Pending Home Sales Actual 6.7%, Expected 0.4%, Previous 3.2%
Release Explanation: The report covers change in the number of homes under contract to be sold, but still awaiting the closing transaction. It is important since the housing market is included in most economic forecasts including retail sales, CPI, and PCE in the U.S. A happy householder will usually lead to a strong economic outlook, but a miss here, either way, and the Markets gets to see the real confidence of the U.S. consumer. There is a very strong impact on the sentiment towards the Usd via the S&P reaction from this report.
Trade Desk Thoughts: The number of signed contracts for home purchases rose in April by 6.7%, the National Association of Realtors said today, a sign that the weakness in housing market may have seen a base in some areas. Record low mortgage interest rates boosted pending home sales for the third consecutive month. The previous month saw a 3.2% rise that set a positive tone in some areas. A 0.4% increase had been expected by economists.
Forex Technical Reaction: Equity markets opened higher and pushed higher after the release. There has been very little reaction from the dollar so far. The dollar continues to weaken in the broad market and is lower against all of the other major currencies for the day.