- US new homes sales rise for 3rd consecutive month
- However, consumer confidence remains high
- US dollar higher on the day
The main economic releases from the US this afternoon have come in a little worse than expected, with the fall in new home sales in particular a disappointment. Against a consensus forecast for 585k the print of 560k was sub par and also the lowest reading since the February release. A slight upwards revision to the prior reading from 571k to 580k softens the blow a little but a 3rd successive decline for this economic indicator means this is becoming a growing concern for the US economy.
At the same time as the new home sales release there was also the latest consumer confidence data published with the conference board index coming in at 119.8. This was pretty much in line with the expected reading but there was a revision lower to the previous reading which now stands at 120.4. Even after the downwards revision the last month’s reading was the second-highest since December 2000 and with the present release only marginally lower, it is readily apparent that consumer confidence is at elevated levels.
US consumer confidence remains close to its highest level of the decade. Source: XTB Macrobond
Despite the negativity of the new home sales release, the US dollar has remained well supported after rising ahead of the release. The buck is rising against almost all of its peers on the day with notable gains seen against the SEK, PLN and NZD.
The US dollar is rising today against almost all of its peers. Source: xStation
We earlier noted the latest positioning data suggests that there could be further gains ahead for the greenback with an elevated number of shorts opening up the possibility of some short covering.