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US Mortgage Applications rise again. Durable Goods and New Home Sales due out today.

US Mortgage Applications rose by 7.5%. This is on the back of a 5.6% gain last week.  The Purchase index rose by 1.0% .  This is the 4th increase in a row but down from last weeks gain of +3.9%.  The Refinance index rose by 12.7% vs last weeks 6.9% increase.  The gains were despite an increase in the 30 year mortgage rate of 5.24%.  The data is consistent with a steadying/improving housing market. Note however, that anecdotal evidence still points toward sales of foreclosed homes and sales of homes in the lower price levels as purchasers take advantage of rebates from the government for 1st time homeowners.

German PMI stronger than expected

German manufacturing PMI came in at 49.0, better than the 47.1 projected.

German services PMI came in at 54.1, better than the 48.8 projected.

Good numbers for Euro as Eur/Usd makes new highs breaching 1.4270.

US Weekly Initial/Continuing Claims, Leading Indicators and Philly Fed Index due out today

greg_michalowski_fxdd_fxtrading01938Initial Claims will be released at 8:30 AM. Expectation is for a decline to 550 K from 558 K last week.  The 4 wk average came in at 565 last week up from 556.5K the week prior.  The gain was the first in 6 weeks. 


Canada CPI comes out a little weaker than expected. USDCAD tests upside resistance.

The Canada CPI for the month of July came out a touch weaker than expected as the month on month index fell by -0.3% versus -0.2% and the YoY measure showed a decline of -0.9%.  The Core measures were also lower by a smidge.  The MoM core measure came in at 0.0% vs expectation of +0.1% and the YoY came in at +1.8% vs +1.9% expectation.  The Bank of Canada targets 2.0% inflation but the decline in inflation is largely due to the decline in energy prices.  Nevertheless, there is spare capacity in the economy which should also keep inflation subdued and the BOC on hold as far as interest rates for the foreseeable future.

US Mortgage Applications rise in the current week

On the back of lower rates and lower prices (and tax benefit for new home buyers), the Mortgage Applications rose by 5.6% in the current week.  Within that number the Purchase index rose 3.9% while the Refinance index rose by 6.9%.  The average rate on a 30 year mortgage fell to 5.15% from 5.37% last week. One year ago the average rate was 6.47%.

Eurozone current account

Eurozone current account came in at 5.3B and non seasonally adjusted came in at -300M. There were no estimates for these current account figures. Prior readings were -1.2B for seasonally adjusted and -13.0B for non SA. No market reaction to figures as Eur/Usd remains just shy of 1.4100.

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