U.S. New Home Sales Surged to Highest Level Since 2007

U.S. dollar rose slightly as new U.S. single-family home sales showed a sharp pick-up in July to the highest level in almost nine years. New home sales increased 12.4% to a seasonally adjusted annual rate of 654k, the fastest since October 2007, the commerce Department said yesterday.

U.S. dollar index settled at 94.50 pips, thanks to such data.

Gold settled at $1,340 as New U.S. single-family home sales unexpectedly rose in July. From a technical point of view, the yellow metal could trade in a limited range in anticipation of Janet Yellen's speech this Friday, which could bring the precious metal to $1,330.

Sterling spiked against USD and settled above $1.32, the highest level in three weeks as orders for UK manufacturing exports hit a two-year peak in August, after a ‘Brexit’ vote. On the other hand, the weaker GBP also boosted price expectations to their highest in over a year.

The Pound could touch $1.33 during the course of the day.

On Tuesday, despite good data of German Manufacturing PMI, Euro failed to manage its gains vs. USD and traded at $1.13.

On Tuesday, oil prices rose by 2% and U.S. crude settled above $48. From a technical point of view, Crude could decline to support level of $47.50 in anticipation of U.S. inventories’ report.

The most important economic events:

• USD MBA Mortgage Applications (AUG 19): (GMT 13:00) – Medium – Forecast (N/A) – Previous (-4.0%).
• USD House Price Purchase Index (QoQ) (2Q): (GMT 15:00) – Medium – Forecast (N/A) – Previous (-1.3%).
• USD House Price Index (MoM) (JUN): (GMT 15:00) – Medium – Forecast (0.3%) – Previous (0.2%).
• USD DOE U.S. Crude Oil Inventories (AUG 19): (GMT 16:30) – Medium – Forecast (-850k) – Previous (-2508).

Disclaimer
The prices and news mentioned in this outlook are absolutely no guarantee of future market performance and do not represent the view of ICM Capital Limited. Financial markets can move in either direction causing profits to be made or complete losses to be incurred by the trader. Each trader must decide for themselves what their risk appetite is and ensure that correct risk management procedures are in place before placing any trades.