Summary:
- US existing home sales drop to lowest level in almost a year
- Initial jobless claims remain robust
- SEK rising and pushing USDSEK down to key support at 8.00
- Jackson Hole Symposium begins
The number of US homes sold in the month of July came in below consensus estimates at 5.44M – the lowest level since last August’s data. There has been a steady drop seen in this economic indicator in recent months after hitting a high of 5.71M in March. Before today’s release the three following read 5.57M, 5.62M and 5.52M and the slide could be seen as a warning sign as to the health of the US housing market.
Today’s economic calendar is light in terms of market moving releases with the weekly initial jobless claims from the US the standout. The number of citizens claiming unemployment benefits ticked higher to 234k in the past week, marginally higher than the 232k seen last time out but below the consensus forecast of 237k. Looking at the US dollar index the market is holding onto key support at 92.45 but has failed to sustain a recovery.
There’s been a sharp move higher in the Swedish Krona today following comments out of the country’s central bank. The USDSEK bares an uncanny resemblance to the USDIDX on a weekly chart with the pair falling in recent months to a major support level. The 8.00 level has previously attracted buyers and acted as a base since late 2014.
The UK economy grew 1.7% yoy and 0.3% qoq in the second quarter this year matching the first estimates. On the surface, growth seems to be beneficial for British assets, however the GDP breakdown discloses a less favorable backdrop. In effect, the pound slipped immediately against the greenback as well as the euro.
We’ve written a great deal about Ripple lately predominantly owing to wild volatility seen there. What’s more we warned yesterday against a possible pullback on this digital currency as some signs of fatigue could have been spotted. As a result, Ripple crashed from shy of 0.3$ to below $0.22. Nonetheless, it has managed to recoup its losses since then climbing above $0.26 during European trading.
The Jackson Hole symposium began today with the world’s leading central bankers convening at an event that has a track record of theowing up major market moving news. Speeches from Janet Yellen and Mario Draghi tomorrow are the most anticipated market events in August, particularly in the case of the ECB president where we can get a market mover that could determine the fate of the EURUSD rally.