U.S. Pending Home Sales Jump More Than Expected In September

Trading 29 oct 2019 Commentaire »

A report released by the National Association of Realtors on Tuesday showed another significant increase in pending home sales in the U.S. in the month of September.

NAR said its pending home sales surged up by 1.5 percent 108.7 in September after spiking by 1.4 percent to a revised 107.1 August.

Economists had expected pending home sales to climb by 0.9 percent compared to the 1.6 percent jump originally reported for the previous month.

With the bigger than expected monthly increase, pending home sales in September were up by 3.9 percent compared to the same month a year ago.

A pending home sale is one in which a contract was signed but not yet closed. Normally, it takes four to six weeks to close a contracted sale.

NAR chief economist Lawrence Yun noted historically low mortgage rates played a significant role in the two straight months of gains.

"Even though home prices are rising faster than income, national buying power has increased by 6% because of better interest rates," Yun said.

He added, "Furthermore, we've seen increased foot traffic as more buyers are evidently eager searching to become homeowners."

The bigger than expected jump in pending home sales reflected sharp increases in the Midwest and South, where pending sales soared by 3.1 percent and 2.6 percent, respectively.

On the other hand, pending home sales slumped by 1.3 percent in the West and edged down by 0.4 percent in the Northeast.


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U.S. Consumer Confidence Unexpectedly Drops From Upwardly Revised Level

Trading 29 oct 2019 Commentaire »

Consumer confidence in the U.S. unexpectedly edged lower in the month of October, according to a report released by the Conference Board on Tuesday, although the drop came from an upwardly revised level in the previous month.

The Conference Board said its consumer confidence index dipped to 125.9 in October from an upwardly revised 126.3 in September.

Economists had expected the consumer confidence index to climb to 128.5 in October from the 125.1 originally reported for the previous month.

"Consumer confidence was relatively flat in October, following a decrease in September," said Lynn Franco, Director of Economic Indicators at the Conference Board. "However, confidence levels remain high and there are no indications that consumers will curtail their holiday spending."

The unexpected decrease in consumer confidence came as consumers were less optimistic about the short-term outlook, with the expectations index sliding to 94.9 in October from 96.8 in September,

The percentage of consumers expecting business conditions will improve over the next six months slipped to 18.6 percent from 20.0 percent, although those expecting business conditions will worsen also fell to 11.6 percent from 13.3 percent.

The outlook for the labor market was also less upbeat, as consumers expecting more jobs in the months ahead dipped to 16.9 percent from 17.6 percent and those anticipating fewer jobs rose to 17.8 percent from 15.4 percent.

Meanwhile, the Conference Board said the present situation index climbed to 172.3 in October from 170.6 in September, as consumers' assessment of current conditions improved somewhat

Consumers claiming business conditions are "good" increased to 39.2 percent from 37.4 percent, while those saying business conditions are "bad" edged down to 11.2 percent from 12.2 percent.

The assessment of the job market was mixed, with those saying jobs are "plentiful" rising to 46.9 percent from 44.5 percent but those claiming jobs are "hard to get" also inching up to 11.8 percent from 11.0 percent.

Last Friday, the University of Michigan released revised data showing U.S. consumer sentiment improved by slightly less than initially estimated in the month of October.

The report said the consumer sentiment index for October was downwardly revised to 95.5 from the preliminary reading of 96.0. Economists had expected the index to be unrevised.

Despite the downward revision, the consumer sentiment index for October was still up from the final September reading of 93.2.

"Sentiment was insignificantly below the mid month level, with the small loss spread over most components of the Index," said Surveys of Consumers chief economist Richard Curtin.

He added, "The overall level of consumer confidence has remained quite favorable and largely unchanged during the past few years."


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Bundesbank's Weidmann Says Climate Goals 'Overburden' Central Banks

Trading 29 oct 2019 Commentaire »

Central banks cannot be expected to play the role of a crisis fighter for the climate, Bundesbank President Jens Weidmann said Tuesday, adding that involving excessively in such issues could risk their independence.

"A monetary policy that explicitly pursues environmental goals threatens to become overburdened," the German central bank chief said in a speech in Frankfurt.

"And in the long term, their independence could be called into question." Weidmann thus adopted a stance that is in opposition to the European Central Bank President designate Christine Lagarde who plans to explore sustainable finance measures such as buying green bonds under the central bank's asset purchase scheme. Lagarde is set to replace Mario Draghi as ECB President, when his term ends on October 31.

"I see demands for a green monetary policy, for example in the form of a "Green QE" or a targeted privilege within the collateral framework, very critically," Weidmann said. "These [Climate Change] are political issues that have to be answered by elected governments and parliaments. Such decisions should not be made by central banks, because they are not democratically legitimized," he added. Further, Weidmann pointed out that moves such as buying green bonds for preference would contradict "market neutrality". The policymaker also warned of conflicting goals once the ECB decides to stop or reduce asset purchases. At that time, there would be calls to continue green bond buying, he said. "Bond purchases should be limited to exceptional situations in Eurosystem monetary policy and should by no means become a permanent instrument," Weidmann said. Central banks can make a contribution to a more sustainable financial system, the central banker said. "Green finance can complement but not replace good and smart climate policy," he concluded. "It is and remains the task of the democratically legitimized politics to determine the necessary change and to overcome the crisis."


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Bundesbank's Weidmann Says Climate Goals 'Overburden' Central Banks

Trading 29 oct 2019 Commentaire »

Central banks cannot be expected to play the role of a crisis fighter for the climate, Bundesbank President Jens Weidmann said Tuesday, adding that involving excessively in such issues could risk their independence.

"A monetary policy that explicitly pursues environmental goals threatens to become overburdened," the German central bank chief said in a speech in Frankfurt.

"And in the long term, their independence could be called into question." Weidmann thus adopted a stance that is in opposition to the European Central Bank President designate Christine Lagarde who plans to explore sustainable finance measures such as buying green bonds under the central bank's asset purchase scheme. Lagarde is set to replace Mario Draghi as ECB President, when his term ends on October 31.

"I see demands for a green monetary policy, for example in the form of a "Green QE" or a targeted privilege within the collateral framework, very critically," Weidmann said. "These [Climate Change] are political issues that have to be answered by elected governments and parliaments. Such decisions should not be made by central banks, because they are not democratically legitimized," he added. Further, Weidmann pointed out that moves such as buying green bonds for preference would contradict "market neutrality". The policymaker also warned of conflicting goals once the ECB decides to stop or reduce asset purchases. At that time, theer would be calls to continue green bond buying, he said. "Bond purchases should be limited to exceptional situations in Eurosystem monetary policy and should by no means become a permanent instrument," Weidmann said. Central banks can make a contribution to a more sustainable financial system, the central banker said. "Green finance can complement but not replace good and smart climate policy," he concluded. "It is and remains the task of the democratically legitimized politics to determine the necessary change and to overcome the crisis."


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Dollar Mixed Following U.S. Consumer Confidence Index, Pending Home Sales

Trading 29 oct 2019 Commentaire »

The U.S. consumer confidence index for October and pending home sales for September have been released at 10:00 am ET Tuesday. Following these data, the greenback traded mixed against its major counterparts. While the greenback fell against the franc, it changed little against the rest of major counterparts.

The greenback was trading at 1.1098 against the euro, 1.2870 against the pound, 108.92 against the yen and 0.9944 against the franc around 10:03 am ET.


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*U.S. Consumer Confidence Index Dips From Revised Level To 125.9 In October

Trading 29 oct 2019 Commentaire »

U.S. Consumer Confidence Index Dips From Revised Level To 125.9 In October


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*U.S. Pending Home Sales Jump 1.5% In September

Trading 29 oct 2019 Commentaire »

U.S. Pending Home Sales Jump 1.5% In September


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Dollar Mixed Ahead Of U.S. Consumer Confidence Index, Pending Home Sales

Trading 29 oct 2019 Commentaire »

The U.S. consumer confidence index for October and pending home sales for September are due at 10:00 am ET Tuesday. Ahead of these data, the greenback traded mixed against its major counterparts. While the greenback fell against the pound, the euro and the franc, it held steady against the yen.

The greenback was worth 1.1096 against the euro, 1.2879 against the pound, 108.96 against the yen and 0.9950 against the franc at 9:55 am ET.


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Pound Climbs As Labour Announces Support For Bill Calling Dec. Election

Trading 29 oct 2019 Commentaire »

The pound advanced against its major counterparts in the European session on Tuesday, erasing its early losses, after the U.K. Labour Party indicated its support for a bill pushing for a December election in Parliament, which is set to be tabled today.

The Labour leader Jeremy Corbyn announced his backing for an election, saying that "his party's condition of taking a no-deal Brexit off the table had been met" after the European Union's decision to extend the Brexit deadline until January 31, 2020.

His remarks came before Prime Minister Boris Johnson's new bill calling for a snap election is set to be presented in Parliament.

The new bill just requires a simple majority vote of MPs to pass the legislation.

The PM's latest attempt come after he failed to get the support of two-thirds of majority to win on Monday.

The Scottish National Party and Liberal Democrats have also indicated support for an early election, raising strong possibility for succeeding the bill.

Data from the Bank of England showed UK consumer credit grew at the slowest pace in more than five years and mortgage approvals rose only marginally in September.

The extra amount borrowed by consumers in order to buy goods and services fell to GBP 0.8 billion in September. Consumer credit was below GBP 1.1 billion for the second month in a row.

The currency declined against its most major counterparts in the Asian session, as the British parliament rejected a plan by Boris Johnson to allow a snap election.

The pound strengthened to a 5-day high of 1.2821 against the franc, from a low of 1.2745 seen at 6:15 am ET. The currency is seen locating resistance around the 1.31 level.

After falling to 1.2807 against the greenback at 5:00 am ET, the pound bounced off to 1.2873. The currency may possibly challenge resistance around the 1.30 level, if it rallies further.

The pound recovered to 140.25 against the yen, following a decline to 139.47 at 6:15 am ET. On the upside, 142.5 is possibly seen as its next resistance level.

Data from the Ministry of Internal Affairs and Communications showed that consumer prices in the Tokyo region of Japan rose 0.4 percent on year in October.

That was unchanged from the September reading, although it was well shy of forecasts for an increase of 0.7 percent.

The pound firmed to a 5-day high of 0.8610 against the euro, reversing from a low of 0.8651 it touched at 6:15 am ET. Next immediate resistance for the pound is seen around the 0.84 level.

Looking ahead, U.S. consumer confidence index for October and pending home sales for September will be featured in the New York session.


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*S&P CoreLogic Case-Shiller 20-City Home Price Index Up 2.0% YoY In August

Trading 29 oct 2019 Commentaire »

S&P CoreLogic Case-Shiller 20-City Home Price Index Up 2.0% YoY In August


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