Housing In Focus

Daily Forex Fundamentals | Written by Crown Forex | Jul 17 08 07:45 GMT |
Major Market Mover: Housing In Focus

After a very busy week for the U.S. markets, from all the testimonies and min-utes, to inflation and sales to growth data, today comes carrying along with it some data on the housing sector, which once was the cause of all the troubles in the economy on all levels.

Housing starts will probably come at their lowest in 17 years, after 975K houses got started in May, it is expected that this number will drop to 960K annual pace in June, highlighting the ongoing contraction in the housing sector, while building permits are expected to decline to 965K in June, down from 969K annual pace.


The housing market is still one of the most sectors that we need to keep an eye on, as it was the first to start all of the slowing growth and the financial turmoil, and the way we see it, if the feds could not manage to make sure that this es-sence is properly soled, it does not matter how hard they try to do for other sec-tors, they are still going down.

The housing sector is correlated with every other angle in the economy, and that's why when the housing slump deepened, the leak has reached to the econ-omy and ruined every good was in it, and that's why we need to see an im-provement, and we need to see that soon, if the FOMC to ever hike rates again, they need to be sure that the housing market will not deteriorate any further.

In another report, weekly jobless claims are expected to reach 380K last week, up from 346K a week earlier, highlighting risky jobs market in July, and increas-ing fears about the health of the jobs market up to the end of the year, and you know how significant that can be for an economy which is striving to get out of a recession.

From the manufacturing sector, the Philly fed index is expected to drop by 15 in July, following a drop of 17.1 in June, showing some stabilization in the manufac-turing sector, and waiting for the better to come.

Another day that will be vital for the U.S. economy is upon us, and again, we need to be fully ready and open to anything might happen with that.

Crown Forex