The unanticipated rise in pending home sales still leaves the index approximately 30 percent below its peak from April. Taking a look at the breakdown of the report, all four regions pushed higher, with the west leading the way, climbing some 11.6 percent for the month of July. Going forward, home sales may come back under pressure in the coming months as Americans face a weak labor market, tight credit conditions, and subdued wage growth. A disappointing nonfarm payrolls report tomorrow will surely add weight onto the already uncertain U.S. economic outlook.
U.S. Pending Home Sales
Source: Bloomberg
Written by Michael Wright, Currency Analyst To Receive Future Articles by Email, please contact me at mwright@fxcm.com Michael Wright is the author of FX Headlines, Fundamentals vs. Technical’s, Weekly Spotlight, and Forex Trading Weekly Forecast
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