Focus on US Housing Data and Consumer Confidence
The Bank of Japan and the Federal Reserve lived up to expectations last week, and did not surprise the financial markets. The Japanese Yen traded marginally higher early Tuesday, after the BoJ’s Monetary Policy Meeting Minutes. The news from Germany is likely to refocus the attention of the Investors o other political events in Europe. While geopolitical worries take centre-stage again, Investors are anticipating Yellen’s speech later today, wondering if she might leave a hint regarding the a possible December Rate Hike.
By close of the Wall Street Session yesterday, the Euro weakened against the Dollar, Sterling declined and the Canadian Dollar, under pressure from geopolitical tensions, retreated.
Most Economic Data were favorable globally last week although Housing Data in the US showed signs of being affected by Hurricane Harvey. Today, we expect Housing Data and Consumer Confidence Data from the US for August. New Home Sales are expected to accelerate in August to a consensus 583,000 annualized rate vs what was a disappointing 571,000 rate in July. Existing Home Sales in August were held lower by significant disruption in Houston in the wake of Hurricane Harvey and a similar effect is a risk for sales on the new home side. The Consumer Confidence Index, underpinned by unusually strong assessments of the labor market and income prospects, has well surpassed the consensus over the last three months.
Tuesday Potential Catalysts
- Case-Shiller, 20-City Adjusted Index for July 9:00AM ET – Medium Impact
Consensus Forecast, Month-to-Month Change: 0.4%
Consensus Range: 0.1% to 0.4%
- Case-Shiller, 20-City Unadjusted Index 9:00AM ET – Medium Impact
Consensus Forecast, Year-on-Year Change: 5.9%
Consensus Range: 5.8% to 5.9%
- New Home Sales for August 10:00AM ET – High Impact
Consensus Forecast, Annualized Rate: 583,000
Consensus Range: 555,000 to 620,000
- Consumer Confidence Index for September 10:00AM ET – High Impact
Consensus Forecast: 120.2
Consensus Range: 118.0 to 123.0
- Fed Chair Yellen Speaks [Cleveland, OH] 12:45PM ET – High Impact
Topic: “Prospects For Growth: Reassessing The Fundamentals”