US Existing Home Sales 02/26/2010

10:00am NY Time US Existing Home Sales    Forecast 5.51M     Previous 5.45M
ACTION: USD/JPY          BUY 5.90M            SELL 5.10M

We’ll be focusing on trading the Existing Home Sales today, and since Housing news is one of the more important news event out of the US, this news release will certainly cause some volatilit,y especially if our tradable figures were hit.  Given the fact that this is the last high impact news release of the week, we could expect to see some traders waiting for this release before committing to a trade…

It is also important to consider that ever since the New Home Buyer’s credit was extended last year, housing sector in the U.S. has been on a decline as there is no pressure until mid of 2010.  With the income tax due later in April, we’ll probably have to wait until end of April or May to see another surge in the housing market. 

Our deviation is the usual 400K, therefore on a release of 5.90M or better, we’ll be looking to BUY USD; on a release of 5.10M or worse, we’ll be looking to SELL USD.

Definition:

“Measures the annualized number of existing residential buildings that were sold during the previous month. A rising trend has a positive effect on the nation’s currency because large purchases tend to be made by consumers that are optimistic and confident in their financial position. The sale of a home also triggers commissions for real estate agents, and often home owners will purchase goods such as appliances and furniture shortly after purchasing a home. Traders watch this report closely as it’s the month’s first demand-side housing indicator to be released.”

Related posts:

1. US New Home Sales 02/24/2010
2. US New Home Sales m/m 11/25/09
3. US New Home Sales 01/27/10
4. US Existing Home Sales – 06/23/09
5. US Core Retail Sales m/m 10/14/09
6. US NFP (Nonfarm Payroll) Employment Changes 02/05/10
7. UK Retail Sales m/m 02/19/2010
8. US Core Retail Sales m/m 11/16/09
9. US NFP (Nonfarm Payroll) Employment Changes 12/04/09
10. US NFP (Nonfarm Payroll) Employment Changes 01/08/10