Today we have the release of Pending Home Sales data and investors will be watching for some momentum in a struggling U.S housing market. Expansion has been slow in the first quarter largely attributed to bad weather conditions. Yet, the Fed will be watching for signs of a spring revival, in order to maintain the pace of its tapering program.
Trading event: Pending Home Sales 1400 GMT.
- Pending Home Sales made a revival last month, edging up 3.4% in March.
- These results were far beyond the expected 1% rise and represented the first sign of growth in 9 months.
- Considering the extent of the expansion, we would expect momentum to continue.
- Mortgage rates fell below 4% for the first time since last October, which should stimulate demand for credit.
- Pending Home Sales are forecasted to rise by 1.1% today.
- Banc De Binary analysts predict Pending Home Sales will rise, which should have a positive impact on the dollar, hence an upward movement in USD/JPY is expected.