U.S Home prices should fall at a slower pace as consumer confidence is up

Home values in 20 U.S. metropolitan areas probably decreased at aslower pace and consumer confidence climbed, signs the recession iseasing as the real estate crisis dissipates, economists said beforereports today. The S&P/Case-Shiller home-price index fell 16.4percent in June from a year earlier, the smallest drop in almost ayear, according to the median forecast of 31 economists surveyed byBloomberg News. A report from the Conference Board may show confidencerose in August for the first time in three months. Demand has alreadyimproved enough for some construction companies to consider cuttingback on discounts and incentives. Toll Brothers Inc., the largest U.S.luxury homebuilder, said contracts rose in the third quarter from ayear earlier for the first time since 2005.

With its rise on Monday, the dollar has clawed above resistance at thebottom of the cloud on daily Ichimoku charts. But Bank ofTokyo-Mitsubishi UFJ's Hashimoto said it was too early to draw anyconclusions, saying the dollar's moves over the entire day need to bewatched. In addition, on weekly Ichimoku charts, the dollar facesresistance at levels roughly around 95.50 yen, making it unlikely thatthe greenback will rise towards levels such as 98 yen to 99 yen thisweek, he said. The euro held firm after a euro zone service sector andmanufacturing survey on Friday showed more improvement than expected.The euro held firm after a euro zone service sector and manufacturingsurvey on Friday showed more improvement than expected. The EUR/USD iscurrently trading at 134.79 as of 9:14am, London Time.

Federal Reserve Chairman ben S. Bernanke, who led the biggest expansionof the central bank’s power in its 95-year history to battle the worsteconomic slump since the Great Depression, will be nominated to asecond term by President Barack Obama. Bernanke “has led the Fedthrough one of the worst financial crises that this nation and thisworld have ever faced,” Obama said in remarks prepared for deliverytoday in Martha’s Vineyard, Massachusetts, where Bernanke is to joinhim. “As an expert on the causes of the Great Depression, I’m sure Bennever imagined that he would be part of a team responsible forpreventing another,” Obama said. “But because of his background, histemperament, his courage, and his creativity, that’s exactly what hehas helped to achieve.

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