U.S. Pending Home Sales Rebound Much More Than Expected In January

Trading 27 fév 2020 Commentaire »

After reporting a steep drop in pending home sales in the U.S. in the previous month, the National Association of Realtors released a report on Thursday showing pending home sales rebounded by much more than anticipated in the month of January.

NAR said its pending home sales spiked by 5.2 percent to 108.8 in January after plunging by 4.3 percent to a revised 103.4 in December.

Economists had expected pending home sales to surge up by 2.2 percent compared to the 4.9 percent nosedive originally reported for the previous month.

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.

"This month's solid activity - the second-highest monthly figure in over two years - is due to the good economic backdrop and exceptionally low mortgage rates," said NAR chief economist Lawrence Yun.

The bigger than expected rebound in pending home sales partly reflected sharp increases in the South and Midwest, where pending home sales soared by 8.7 percent and 7.3 percent, respectively.

Pending home sales in the Northeast also climbed by 1.3 percent, while pending home sales in the West fell by 1.1 percent.

Citing data from active listings at realtor.com, Yun says the year-over-year increases show a strong desire for homeownership.

"With housing starts hovering at 1.6 million in December and January, along with the favorable mortgage rates, among other factors, 2020 has so far presented a very positive sales climate," Yun said.

He added, "Moreover, the latest stock market correction could provide exceptional, even lower mortgage rates for a few weeks, and that would help bring about a noticeable upturn in the coming months."

On Wednesday, the Commerce Department released a separate report showing new home sales in the U.S. jumped to their highest level in over twelve years in the month of January.

The report said new home sales spiked by 7.9 percent to an annual rate of 764,000 in January after jumping by 2.3 percent to an upwardly revised rate of 708,000 in December.

Economists had expected new home sales to surge up by 2.3 percent to an annual rate of 710,000 from the 694,000 originally reported for the previous month.

With the much bigger than expected increase, new home sales reached their highest annual rate since hitting 778,000 in July of 2007.


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*U.S. Pending Home Sales Spike 5.2% In January

Trading 27 fév 2020 Commentaire »

U.S. Pending Home Sales Spike 5.2% In January


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U.S. GDP Growth Unrevised At 2.1%, In Line With Estimates

Trading 27 fév 2020 Commentaire »

A report released by the Commerce Department on Thursday showed the pace of U.S. economic growth in the fourth quarter of 2019 was unrevised from the initial estimate.

The Commerce Department said real gross domestic product increased by 2.1 percent in the fourth quarter, unchanged from the estimate provided last month and in line with economist estimates.

The report showed upward revisions to private inventory investment, exports, federal government spending, and residential fixed investment

However, the upward revisions were offset by downward revisions to non-residential fixed investment, consumer spending, and state and local government spending and an upward revision to imports.

The GDP growth in the fourth quarter was unchanged from the third quarter, although a note from economists at Oxford Economics said the underlying details of the report paint a softer picture ahead of the coronavirus outbreak.

"Nearly three quarters of the GDP advance came from a temporary collapse in imports, while business investment contracted sharply and consumers spent more cautiously," the economists said.

"The most recent three quarters mark the economy's worst performance since the 2016 slump," they added. "And, stripping out trade, inventories and government spending, final sales to domestic purchasers rose only 1.3% - the weakest advance since 2015."

The report said imports, which are a subtraction in the calculation of GDP, plummeted by 8.6 percent in the fourth quarter after jumping by 1.8 percent in the third quarter.

The Commerce Department also said the pace of consumer spending growth slowed to 1.7 percent in the fourth quarter from 3.2 percent in the third quarter.


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U.S. Durable Goods Orders Dip Amid Sharp Pullback In Defense Orders

Trading 27 fév 2020 Commentaire »

Reflecting a sharp drop in volatile defense orders, the Commerce Department released a report on Thursday showing a modest decrease in U.S. durable goods orders in the month of January.

The Commerce Department said durable goods orders edged down by 0.2 percent in January after spiking by an upwardly revised 2.9 percent in December.

Economists had expected durable goods orders to slump by 1.5 percent compared to the 2.4 percent jump that had been reported for the previous month.

The modest decrease in durable goods orders came as orders for defense capital goods plunged by 39.8 percent in January after soaring by 87.4 percent in December.

Excluding defense, durable goods orders surged up by 3.6 percent in January after slumping by 1.9 percent in the previous month.

The report said orders for transportation equipment tumbled by 2.2 percent in January after surging up by 8.8 percent in December.

While orders for commercial aircraft and parts skyrocketed by 346.2 percent, orders for defense aircraft and parts plummeted by 19.6 percent.

Excluding the steep drop in orders for transportation equipment, durable goods orders climbed by 0.9 percent in January after a revised 0.1 percent uptick in December.

Ex-transportation orders had been expected to edge up by 0.2 percent compared to the 0.1 percent drop originally reported for the previous month.

The bigger than expected increase in ex-transportation orders partly reflected sharp increases in orders for primary metals and machinery.

The report also said orders for non-defense capital goods, excluding aircraft, a key indicator of business spending, jumped by 1.1 percent in January after falling by 0.5 percent in December.

Shipments in the same category, which is the source data for equipment investment in GDP, also surged up by 1.1 percent in January after edging down by 0.1 percent in the previous month.

"That suggests business equipment growth was beginning to rebound in the first quarter, although that recovery could be curtailed very quickly in the event of a widespread domestic coronavirus outbreak," said Michael Pearce, Senior U.S. Economist at Capital Economics.


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*U.S. Dollar Falls To Fresh 3-week Low Of 0.9685 Against Franc

Trading 27 fév 2020 Commentaire »

U.S. Dollar Falls To Fresh 3-week Low Of 0.9685 Against Franc


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*U.S. Dollar Slides To Near 3-week Low Of 1.0979 Against Euro

Trading 27 fév 2020 Commentaire »

U.S. Dollar Slides To Near 3-week Low Of 1.0979 Against Euro


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U.S. Jobless Claims Climb More Than Expected To 219,000

Trading 27 fév 2020 Commentaire »

First-time claims for U.S. unemployment benefits climbed by more than expected in the week ended February 22nd, according to a report released by the Labor Department on Thursday.

The report said initial jobless claims rose to 219,000, an increase of 8,000 from the previous week's revised level of 211,000.

Economists had expected jobless claims to inch up to 212,000 from the 210,000 originally reported for the previous week.

The Labor Department said the less volatile four-week moving average also inched up to 209,750, an increase of 500 from the previous week's revised average of 209,250.

Meanwhile, the report said continuing claims, a reading on the number of people receiving ongoing unemployment assistance, fell by 9,000 to 1.724 million in the week ended February 15th.

The four-week moving average of continuing claims still rose to 1,729,250, an increase of 5,250 from the previous week's revised average of 1,724,000.

Next Friday, the Labor Department is scheduled to release its more closely watched monthly employment report for February.

Economists currently expect employment to increase by about 178,000 jobs February compared to the jump of 225,000 jobs in January.


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February 27, 2020 : GBP/USD Intraday technical analysis and trade recommendations.

Trading 27 fév 2020 Commentaire »

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On the period between December 18th - 23rd, bearish breakout below the depicted previous bullish channel followed by transient bearish movement below 1.3000 were demonstrated on the H4 chart.

However, immediate bullish recovery (around 1.2900) brought the pair back above 1.3000.

Bullish breakout above 1.3000 allowed the mentioned Intraday bullish pullback to pursue towards 1.3250 (the backside of the broken channel) where the current wide-ranged movement channel was established between (1.3200-1.2980).

In the meanwhile, recent bearish breakdown below 1.2980 enhanced further bearish decline towards 1.2890 (the lower limit of the movement channel) where two episodes of bullish rejection were manifested on February 10th and 20th.

This was followed by the recent bullish pullback towards the price zone of 1.2980-1.3000 which has been offering bearish rejection until now.

Although the Intermediate-term technical outlook remains bearish below the price level of 1.3000 (Supply-Zone), any bullish breakout above 1.3000 should be waited as a valid Intraday BUY entry.

If so, further bullish advancement will be demonstrated towards the price levels of 1.3070 and 1.3150.

On the other hand, bearish persistence below 1.2980-1.3000 will probably push the GBP/USD pair back towards 1.2870-1.2850 for another retesting.

The material has been provided by InstaForex Company - www.instaforex.com

U.S. GDP Growth Unrevised At 2.1% In Q4

Trading 27 fév 2020 Commentaire »

A report released by the Commerce Department on Thursday showed the pace of U.S. economic growth in the fourth quarter of 2019 was unrevised from the initial estimate.

The Commerce Department said real gross domestic product increased by 2.1 percent in the fourth quarter, unchanged from the estimate provided last month.

The report showed upward revisions to private inventory investment, exports, federal government spending, and residential fixed investment

However, the upward revisions were offset by downward revisions to non-residential fixed investment, consumer spending, state and local government spending and an upward revision to imports.


The material has been provided by InstaForex Company - www.instaforex.com

U.S. Durable Goods Orders Drop Much Less Than Expected In January

Trading 27 fév 2020 Commentaire »

Reflecting a sharp pullback in orders for transportation equipment, the Commerce Department released a report on Thursday showing a modest decrease in U.S. durable goods orders in the month of January.

The Commerce Department said durable goods orders edged down by 0.2 percent in January after spiking by an upwardly revised 2.9 percent in December.

Economists had expected durable goods orders to slump by 1.5 percent compared to the 2.4 percent jump that had been reported for the previous month.

However, excluding the steep drop in orders for transportation equipment, durable goods orders climbed by 0.9 percent in January after a revised 0.1 percent uptick in December.

Ex-transportation orders had been expected to edge up by 0.2 percent compared to the 0.1 percent drop originally reported for the previous month.


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