15:00 USD Existing Home Sales 4.65M 4.42M
Existing Home Sales measures the change in the annualized number of existing residential buildings that were sold during the previous month. This report helps to gauge the strength of the U.S. housing market and is a key indicator of overall economic strength.
A higher than expected reading should be taken as positive/bullish for the USD, while a lower than expected reading should be taken as negative/bearish for the USD.
Analysis and Recommendations:
Support and Resistance levels for tomorrows at
S: 0.9333 0.9391 0.9441
R: 0.9549 0.9607 0.9657
The USD/CHF trading at 0.9334
Data released earlier this week showed that the ZEW index of Swiss economic expectations climbed to -50.1 in January, giving a boost to the Franc. There is nothing on the calendar for the CHF for the remainder of the week.
Data in from the US showed jobless claims dropped to the lowest level in almost four years, while consumer prices remained flat for a 2nd month. Housing starts data came in weaker than expected showing that the construction sector despite some improved confidence still has a way to go yet. Even though, market reports were saying there would be an increase in housing starts, until the foreclosure glut is absorbed housing starts will remain low.
Other positive signs for the US labor market was the drop in jobless claims falling by a larger than expected figure falling to 352K, the lowest since 2008. This follows a sharp increase in claims the previous week to above the 400K level.
We should see the USD stablize and continue to build strength. This is a bearish environment and we might see this as a sell opportunity.
Upcoming Govt Bond Sales Dates
Jan 23 10:10 Norway Nok 6.0bn 4.25% May 2017 bond
Jan 23 10:10 Slovakia Auctions Apr 2014 bond
Jan 23 10:30 Germany Eur 3.0bn Jan 2013 Bubill
Jan 23 12:00 Norway Details bond auction on Jan 30
Jan 24 09:30 Netherlands Eur 1.5-2.5bn Jan 2013 & Jan 2042 DSL
Jan 24 09:30 Spain Auctions 3 & 6M T-bills
Jan 24 16:30 Italy Details CTZ/BTPei on Jan 26 & BOT on Jan 27 &
Jan 24 18:00 US Auctions 2Y Notes
Jan 25 10:10 Sweden Nominal bond auction
Jan 25 10:30 Germany Eur 3.0bn 3.25% Jul 2042 Bund
Jan 25 16:30 Italy Details BTP/CCTeu on Jan 30
Jan 25 18:00 US Auctions 5Y Notes
Jan 26 10:10 Italy Auctions CTZ/BTPei
Jan 26 18:00 US Auctions 7Y Notes
Jan 27 10:10 Italy BOT auction