Fundamentals of the Day: March 25, 2024

Daily Fundamentals - Quantum Strikes
Daily Fundamentals - Quantum Strikes

Today’s economic calendar highlights significant data from the United States, focusing on the housing market, which is a crucial component of the country’s economic health.

1. New Home Sales MoM (Month-over-Month) for February:

  • Time of Release: 16:00 GMT
  • Previous: 1.5%
  • Consensus: 3%
  • Analysis: This indicator measures the percentage change in the number of newly constructed homes sold. A higher than expected reading should be taken as positive/bullish for the USD, as it indicates a robust housing market, which is a key driver of economic activity. Conversely, a lower than expected reading should be seen as negative/bearish for the USD.

2. New Home Sales for February:

  • Time of Release: 16:00 GMT
  • Previous: 0.661 Million units
  • Consensus: 0.68 Million units
  • Analysis: This figure represents the annualized number of new single-family homes sold during the previous month. A figure above the consensus would suggest a growing demand in the housing market, reflecting consumer confidence and a strong economy, which could bolster the USD. On the other hand, a disappointing figure might indicate underlying weaknesses in the housing market and potentially the broader economy, likely exerting pressure on the USD.

Market participants will be closely watching these releases as they provide valuable insights into the health of the US housing market and, by extension, the overall economic momentum. Positive data could reinforce expectations of a resilient US economy, potentially supporting the Federal Reserve’s current monetary policy stance. Conversely, weaker than expected figures could raise concerns about economic slowdown, influencing market sentiment and USD valuation.

Investors and traders should prepare for potential volatility around the time of these releases and consider the broader market context when interpreting the data.

Trading our dreams into reality,
Mihai Paul Olteanu