Existing Home Sales, and the effect on USD? | Forex Factory

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Existing Home Sales, and the effect on USD?

  • #1
  • First Post: Sep 23, 2007 11:51am Sep 23, 2007 11:51am
Alright everyone, this is my very first post on this forum. I have been a loyal reader here for some time now. So a few days ago, I signed up, and here is to my first question. Hopefully someone can give me some useful feedback. So here goes:

According to the Forex Factory calendar, Tuesday is the day where existing home sales, will be announced. I am curious to hear about you guys thoughts on this and how it will affect the usd vs. other currencies.
So if anyone has something to share, please do so..
  • #2
  • Sep 23, 2007 1:41pm Sep 23, 2007 1:41pm
will see the august numbers, probably reflecting some sub-prime problem. My bet is number will come bad. If august number prints 5.5 mil sales, it's under 2006 average by 1 milion(20%) and by 1,5 mil (25%) under 2007 average price.

Even if numbers prints as analist said it, the picture still looks bad for america's economy
"Abandon all hope, you who enter here" La Divina Commedia, Dante Alighieri
  • #3
  • Sep 23, 2007 9:17pm Sep 23, 2007 9:17pm
Existing home sales will probably be worse than expectations, but everyone knows that. Thats why even if the numbers are the worst in years (which seems to be the trend lately with the USD housing data) it probably won't affect the USD much. Rather, I think traders will be pleasantly suprised Tuesday. Let's not forget that the whole subprime cirsis didn't hit until about halfway into August, where lots of sales were still getting done. Either way, the USD may gain some strength this week as people begin to realize that the Fed cutting rates will also mean that the European, British, and Canadian central banks will not be far behind.
I am Canadian!
  • #4
  • Oct 2, 2007 9:28am Oct 2, 2007 9:28am
Quoting Canadian_MAF
Existing home sales will probably be worse than expectations, but everyone knows that. Thats why even if the numbers are the worst in years (which seems to be the trend lately with the USD housing data) it probably won't affect the USD much. Rather, I think traders will be pleasantly suprised Tuesday. Let's not forget that the whole subprime cirsis didn't hit until about halfway into August, where lots of sales were still getting done. Either way, the USD may gain some strength this week as people begin to realize that the Fed cutting rates will also mean that the European, British, and Canadian central banks will not be far behind.

I guess this explains the bump up the USD has seen since the release of housing data. When I saw the headline, I short USD on several major pairs - and all of them have gone opposite on me! It's a good thing I'm a newbie trader and I'm not trading real money, but I'm surprised to not see a big drop.

Now I know why most people say don't trade the news. The market is a humorless, merciless teacher of fools.
  • #5
  • Last Post: Oct 2, 2007 10:05am Oct 2, 2007 10:05am
Quoting dr_zeus
I guess this explains the bump up the USD has seen since the release of housing data.
I think we can attribute the move to the 22.5% upward revision in the previous months numbers. Thats a pretty big jump.
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