Silence before the storm today as there are no big key figures in an otherwise verybusy week. Only release of interest is US pending home sales, which is a goodleading indicator for existing home sales. The numbers have been quite strongrecently showing a clear rebound in the past two months as also signalled by animprovement in the NAHB housing index. Other housing data are still soft, though, asbuilding permits and new home sales have disappointed. The housing market is one ofthe areas that Janet Yellen still highlighted as weak as she said ‘the housing sector,however, has shown little progress… and readings this year have, overall continued tobe disappointing’.
The Fed is thus also likely to still see housing as the weak spot in its statement at theWednesday meeting, which will only provide a statement (no press conference orprojections this time). We expect the tone, though, to be a bit more positive onemployment given Janet Yellen’s comments in the testimony that the labour markethad improved faster than expected.
In addition to the Fed meeting this week we get ISM and non-farm payrolls in the USand euro-area releases for flash CPI for July and ECB bank lending survey.
In Denmark, June’s securities statistics and portfolio investment data are scheduledfor release.
Read the full report: FX Daily