What to Look out for Today – Threats and New Homes Sales hit USD

U.S. new home sales was released yesterday – and the data was less than confident inspiring, coming in at a seven-month low. Although it was an unexpected – the signs were there – just this month data revealed a drop in both building permits and home building. The unfortunate news for the US real estate is that analysts are expecting this to continue throughout the third quarter of the year.

A proposed over-hall of the U.S. tax code is being floated in lieu of complaints made by small business owners, Trump’s threats to shut-down government and terminate NAFTA are all contributing to markets being risk-averse towards the USD.
This caused the USD to weaken against its primary competing currency the Euro by 0.188% this morning coming in at 1.1794.
The Union’s one currency on the other-hand is experiencing its highest prices in the past five years and an overbuying trend it hasn’t seen since 2007. This is largely due to a torrent of positive data and growth in one of the EU’s biggest markets – Germany.
Of course the primary event of the day is the beginning of the Jackson Hole summit – and it seems that markets are holding their breaths for the first set of speeches although both the dollar and European stock seem to have climbed slightly in hopeful anticipation.
This article comprises the personal view and opinion of the STO Investment Research Desk and at no time should be construed as Investment Advice.

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