US data reviewed and previewed for tomorrow - Nomura

Analysts at Nomura offered a review of today's US data and a preview of the remaining key data release for the US . . .
Key Quotes:
"Review:
Existing home sales: Existing home sales increased 1.1% m-o-m to an annual rate of 5.62mn in May, above expectations (Nomura: -0.1% to 5.565mn, Consensus: -0.4% to 5.55mn). The prior month was revised down slightly to the pace of 5.56mn (previously reported as 5.57mn). Both single family and multifamily sales increased at a healthy pace. Today’s stronger-than-expected reading suggests that healthy demand from consumers may have outweighed the adverse effects from the lean supply of homes on the market. In particular, mortgage rates that trended lower in May and steady job gains in recent months may have been supportive of the sales growth in May. The supply of previously owned home is still behind demand. The unsold inventory increased slightly to 4.2-months’ worth of supply from 4.1 months. But on a y-o-y basis, the homes for sale on the market were down 8.4% in May, only marginally better than a decline of 9.4% in April. The median existing home price for both single and multifamily homes rose to $252.8k, up 5.8% y-o-y from May 2016. Low supply may worsen home affordability, but continued improvement in job market and income growth, coupled with lower mortgage rates, may offset the exacerbation to a degree.
Preview:
Initial jobless claims: For the week ending 10 June, initial jobless claims fell 8k to 237k. The 4-week moving average remained relatively unchanged at 243k (242k one week prior). Continuing unemployment insurance claims increased 6k to 1935k with the 4- week moving average increasing slightly to 1927k from 1918k for the week ending 3 June. Incoming data suggest layoffs remain low and job creation remains healthy. As firms become less willing to let go of their employees and the labor market tightens further, we expect continued low readings in the medium term."
Author

Ross J Burland
FXStreet
Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.

















