Nothing seemed to portend trouble and the market stood rooted to the spot for the whole day. However, as soon as the Americans finished their morning coffee, the portraits of the dead presidents began to noticeably cheaper. The growth rate of S & P / Case-Shiller data on housing prices in the United States slowed down from 2.2% to 2.0% that became a reason for sadness and gloom. Moreover, it was initially predicted that their growth rate would accelerate from 2.1% to 2.2%. The previous results were revised upward, and the current slowdown looks very impressive and somewhat frightening. Indeed, inflation has slowed so recently. Well, if the pace of growth in housing prices slows down, then inflation itself will have nothing to grow with.
Nevertheless, after the Americans finish their morning coffee, the portraits of the dead presidents may well perk up. The reason for joy should be the data on the real estate market. In particular, sales of new homes may increase by 3.9% or 25 thousand, from 635 thousand to 660 thousand. If we take into account that sales fell as much as 12.8% in the previous month then the expected growth looks very impressive and encouraging. In addition, we do not forget that the situation on the market is heating up and many people's nerves can't stand it. After all, tomorrow the final data on the GDP of the United States for the second quarter will be published. Thus, it is possible that the reaction to data on home sales will be overly emotional.
New Home Sales (United States):
Against this background, the single European currency may fall to 1.0950.
The pound will also be affected by data on sales of new homes in the United States. Therefore, it will drop to 1.2400.
