This week and early next will be pretty calm as Christmas and the Gregorian New Year celebrations keep traders and investors out of the markets. Nonetheless, money, as they say, never sleeps and the holidays don’t completely eliminate the need to trade and transact in the capital markets. Last week saw some very robust growth and vigor in the US Housing market. Starting with building permits Up 2% more than expectation, house starts also above expectation, existing home sales, 4.87% above expectation and new home sales 12% above expectation paints a good picture of this important sector of US economics. The US economy is so massive, compared to the second largest trading zone, the EU ($19.3T and $18.0T respectively) that it is not possible to say that it is a construction dependent economy. It is so enormous that it is sufficiently diversified not to be dependent on any one sector for its income. But housing is important estimated to be around 20 percent of the economy. A consequential ratio. This strength in housing coupled with last week’s increase in US interest rates is holding the USD strong.
Markets Cool over Holiday Week
Weekly Report - 25/12/2017