The latest US housing figures which include new home sales and the S&P Case-Shiller home price index both improved according to the latest readings. Home sales increased by 6.80% versus the prior months -10.00% slide. On an annualized basis, home prices tracked across 20 metropolitan areas rose at a 5.00% pace, adding to other optimistic housing figures. However, other data on the economy was not quite as promising after durable goods orders fell more than expected, contracting by -0.50% while the core figure rose a modest 0.50%, slowing versus the previous 0.60%. The data was broadly received positively by the Atlanta Federal Reserve GDP model which upgraded the second quarter outlook to 0.80%. The dollar continued to gain ground against peers as data increasingly supports higher interest rate policies just as gold sharply corrects lower on the dollar momentum higher.
US Homes Rise to Pre-Crisis Prices
Daily Analysis - 27/05/2015