The US NFP report will come out on January 8 at 15:30 MT time.
In April home starts dive 3.7% in the US, while keeping to an 11-year peak
In April, the construction of new houses went down by 3.7%, but this is not so crucial, as the home starts hit the 11-year maximum just a month earlier, and market experts expected some digression.
The annual rate of construction of new homes inched down to 1.29 million units the previous month from an updated 1.34 million units in March that appeared to be the strongest indicator since mid-2007.
Market experts had expected that they’d amount to about 1.31 million units
Permits for construction slumped by 1.8% to 1.35 million per annum, as the report informed on Wednesday.
Most of the dive in housing construction took place in a volatile multi-unit category, including villas, townhouses, apartment buildings and so on.
The laying of new houses for one family hasn’t changed a lot. These homes make up the bulk of the market for new homes in America.
The laying of new homes has dived in all regions except the South, where approximately half of all new homes are built every year.
A broader picture demonstrates that the housing market has been soaring for years because of low interest rates as well as a better job market in two decades, although soaring mortgage rates might cause compression.
For example, the cost of a mortgage loan hit a seven-year maximum and this affected the recent dive in the number of applications for mortgages.
As a matter of fact, prices are still low by historical standards, and a surging economy means that there are still many buyers on the market, and their main problem is the lack of supply. The construction of new housing has tacked on by almost 11% versus a year earlier, but it’s still not enough to back demand.
FOMC Meeting Minutes will be released on January 6 at 21:00 MT time.
USD: all attention to Manufacturing PMI Instruments to trade: EUR/USD, USD/JPY, USD/CHF US ISM Manufacturing PMI will be out on January 4 at 17:00 MT time…
The European Central Bank will publish the monetary policy statement with the interest rate decision on January 21, at 14:45 MT time.
Joe Biden is going to unveil a Covid-19 relief package of about $2 trillion. After this announcement, the 10-year Treasury yield rose, adding support for the USD.
The US dollar’s weakness offered a boost to emerging-market currencies and oil.