|

US: Housing starts and Philly Fed survey in the limelight - Nomura

Research Team at Nomura, suggests that the housing starts and Philly Fed Survey will be the key economic releases in today’s session in addition to the CPI data.

Key Quotes

Housing starts: Housing starts dropped sharply in September, declining 9.0% m-o-m to an annualized 1047k, well below expectations. Most of the weakness was concentrated in multi-family starts, which dropped 38% to an annualized 264k from 426k in the prior month. We think that the sharp drop is due to pent-up payback after strong prolonged gains in the prior months. As such, we expect multi-family starts to rebound to some degree in October. On the single family component, building permit data suggest that single-family housing starts remained steady in October. Together, we think that total housing starts rebounded strongly by 10.8% to an annualized 1160k in October.” 

“On building permits, we think that permit application reverted back to the trend after a sharp jump in September and forecast a 3.9% decline to an annualized 1182k.”

Philly Fed Survey: The Philly Fed index edged lower to 9.7 in October from 12.8 in September. Although the headline index declined, the details of the report showed better manufacturing activity in the Philly Fed district in October. The new orders index improved almost 15 points to 16.3, and the shipments index swung back into positive territory to 15.3 from -8.8. Employment indicators were on the soft side but improved from September. The number of employees index edged upwards to -4.0 from -5.3, while the average workweek index improved to -2.2 from -11.7. We think these broad improvements imply that business conditions remained favorable in the Philly Fed region and forecast that the index was steady at 7.0 in November.”

Author

Sandeep Kanihama

Sandeep Kanihama

FXStreet Contributor

Sandeep Kanihama is an FX Editor and Analyst with FXstreet having principally focus area on Asia and European markets with commodity, currency and equities coverage. He is stationed in the Indian capital city of Delhi.

More from Sandeep Kanihama
Share:

Editor's Picks

GBP/USD loses momentum, flirts with 1.3200

GBP/USD is struggling to maintain its positive bias on Thursday, retreating toward the 1.3200 region in response to the pick in the buying interest around the Greenback. That said, Cable remains under scrutiny as cautious market sentiment keeps investors focused on the US-Iran conflict and political effervescence in the UK.

EUR/USD trims gains, challenges 1.1400

EUR/USD now gives away part of its earlier advance, receding toward the 1.1400 contention zone on Thursday. Meanwhile, the pair’s recovery comes amid extra losses in the US Dollar, at the time when while investors continue to monitor developments in the Middle East and sentiment surrounding global technology stocks.

Gold remains bid and close to $4,100

Gold accelerates its recovery and approaches the key $4,000 mark per troy ounce at the end of the week, adding to Thursday’s advance. However, expectations for a hawkish Fed remain steady and keep the yellow metal’s potential upside contained.

Crypto Today: Bitcoin at $60,000, Ethereum at $1,500, and XRP at $1 face a make-or-break test

Bitcoin (BTC), Ethereum (ETH), and Ripple (XRP) are trading in the red on Friday after three consecutive days of losses, testing their respective make-or-break support levels.

Week ahead – NFP report to challenge Dollar strength and the hawkish Fed

Dollar strength dominates markets, as the hawkish Fed overshadows geopolitics and lower oil prices. NFP week could drive September Fed hike expectations and boost market volatility. The euro lacks fresh bullish catalysts, all eyes on the preliminary inflation report and the ECB Forum.

Regime change: Inside Kevin Warsh's first move to make the Fed unreadable on purpose

The rate did not move. That was the least interesting thing about Kevin Warsh's first meeting in charge of the Fed. The FOMC held its benchmark at 3.50%-3.75% for the fourth straight meeting, exactly as priced, and then the new chair used his first press conference to dismantle the machinery the market has leaned on for a decade.