|

US: Strong reading in New Home sales in February - Wells Fargo

Analysts from Wells Fargo, point out that reading in New Homes sales in the US regarding February showed strong numbers and that the builder sentiment index jumped to the previous peak level. 

Key Quotes: 

“Following an upwardly revised January reading, new home sales jumped 6.1 percent in February to a 592,000-unit pace due to mild temperatures. Previous months’ data were revised down by a net 4,000 units.”

New home sales surged well ahead of the consensus estimate, likely due to unusually mild weather in February, which pulled sales forward. We suspect sales will slow in the coming months as the Nor’easter likely stalled activity.”

“The median price of a new home fell 4.9 percent year over year, while the average jumped almost 12 percent.”

“The NAHB/Wells Fargo Housing Market Index surged in March, reaching the highest level in more than a decade at 71. We suspect much of the post-election lift in sentiment reflects hope that the Trump Administration will follow through on curbing regulation, which could ease permit costs.”

Author

Matías Salord

Matías started in financial markets in 2008, after graduating in Economics. He was trained in chart analysis and then became an educator. He also studied Journalism. He started writing analyses for specialized websites before joining FXStreet.

More from Matías Salord
Share:

Editor's Picks

EUR/USD recovers above 1.1600 as focus shifts to US NFP

EUR/USD recovers ground above 1.1600 in Friday's European trading. The pair's uptick is sponsored by a profit-taking pullback in the US Dollar, as traders reposition ahead of the critical US Nonfarm Payrolls data. Meanwhile, the Middle East conflict and higher oil prices could keep the recovery in check. 

GBP/USD rebounds toward 1.3400 in countdown to US NFP

GBP/USD is rebounding toward 1.3400 in the European session on Friday. A modest improvement in risk sentiment and a broad-based US Dollar retreat help the pair recover its weekly losses. The focus now remains on the US NFP data and Middle East headlines for fresh trading incentives. 

Gold advances on increased safe-haven demand

Gold price recovers its recent losses from the previous session. The yellow metal advances as the broader precious metals market rebounds on safe-haven demand. However, the yellow metal is on track for its first weekly decline in five weeks as escalating Middle East tensions push oil prices higher, fueling inflation concerns and reducing bets on Federal Reserve rate cuts.

US Nonfarm Payrolls expected to show hiring moderated in February

The United States Bureau of Labor Statistics will release the Nonfarm Payrolls data for February at 13:30 GMT. Volatility around the US Dollar will likely ramp up on the employment report, with investors looking for fresh insights on the US Federal Reserve’s path forward on interest rates, especially after the crisis in the Middle East revived concerns over rising inflation.

The market compass is pointing at a barrel of Oil

The Asian open is arriving with equities leaning the wrong way, and the reason is not complicated. The market’s compass needle has snapped firmly toward crude. In this tape, oil is not just another input price; it is the gravitational center around which every asset class is orbiting.

Top 3 Price Prediction: Bitcoin, Ethereum, Ripple at risk as US-Iran war extends

Bitcoin, Ethereum, and Ripple trade cautiously at press time on Friday, close to key support levels after a roughly 2% pullback the previous day. Bitcoin holds above $71,000, Ethereum at $2,000, and XRP continues to consolidate in a sideways range.