10:00am (NY Time) US New Home Sales Forecast 442K Previous 433K
ACTION: USD/JPY or USD/CHF BUY 512K SELL 370K
New Home Sales is expected at 442K, if the number is lower, it would be bad for USD and risk sentiment, so we will look to SELL USD/JPY; if the number is higher, it would be good for USD and risk sentiment, we could see a rally in USD and BUY USD/JPY.
Definition:
“Measures the annualized number of new residential buildings that were sold during the previous month. A rising trend has a positive effect on the nation’s currency because the housing market is a leading gauge for the overall economy. A high level of housing activity signals that the construction industry is healthy and that consumers have the capital to make large investments. More importantly, new housing activity creates an economic ripple effect as home owners buy goods such as appliances and furniture for their homes, and builders buy raw materials and hire more workers to meet demand.”
Analysis:
US Housing data is considered as a global risk event because of the larger implication over the world economy. Therefore, we should treat this event more as a risk sentiment event rather than a U.S. event. In the event of a better than expected release, expect to see risk appetite sentiment driving the market as investors seek for returns from the equity market and/or other high-yield instruments; in the event of a worse than expected release, demand for U.S. Treasuries should rise as traders seek the safe-haven protection of the USD.
Related posts:
- US New Home Sales m/m 11/25/09
- US New Home Sales 01/27/10
- US New Home Sales 02/24/2010
- Forex Trading Plan For US New Home Sales 08/25/10
- Trading Strategy For US New Home Sales 06/23/10
- US New Home Sales 03/24/2010
- US New Home Sales Forex Trading Plan 10/27/10
- Forex News Trading US New Home Sales 02/24/11
- Forex Trade Signal For US New Home Sales 09/24/10
- Forex News Trading US New Home Sales m/m 03/23/11
