After several trading sessions of growth, EURUSD is taking a break on Wednesday. However, the momentum may yet continue in the future. The major currency pair is slightly correcting on Wednesday. The current quote for the instrument is 1.0699. The statistics published by the US yesterday were an unpleasant surprise. The New Home Sales showed 591K in April after being 709K (a revised reading) the month before and the expected reading of 751K. As a result, the indicator has been consistently worsening – in March and April, it lost 10.5% m/m and 16.6% m/m respectively.
One of the possible reasons for that is the benchmark interest rate hike, which, iт turn, boosted the mortgage rate. If so, it’s bad news for the real estate sector – there won’t be any support this year. Speeches delivered last night by the US Fed and ECB heads barely influenced capital markets. The ECB Governor Christine Lagarde will speak again Wednesday evening.
The US is scheduled to report on the Durable Goods Orders today, which is expected to gain 0.6% m/m in April after adding 1.1% m/m the month before. When it comes to this indicator, it is a common fact that “the devil is in the details” – one should take a closer look at the components of the report. Moreover, later in the evening, the US Fed is planning to release its May Meeting Minutes. It is highly unlikely that investors will find something new about the Fed’s policy but the document always attracts a lot of attention.
