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Weak data on new home sales have caused a sharp decline in the U.S. currency. As shown by the U.S. Census Bureau, by the end of July home sales in the primary market in the U.S. were at the level of 394 thousand units annualized seasonally adjusted. The figure is well below the average forecast of analysts, which was at the level of 492 thousand value for June was revised to 455 thousand from 497 thousand
Given the revised data, housing sales in the primary market in the U.S. declined in May and July, and showed only a small increase in April and June. Despite the downward revision, sales are still 6.0% higher than the same period last year.
The pace of sales fell in all four regions of the country, with double-digit declines were observed in the Southern and Western regions.
The supply of new homes rose 4.3% to 171 thousand, which corresponds to stock up sales of 5.2 months. Last month the figure was at 4.3 months. Growth stocks and a drop in sales indicates a significant fall in demand in the market.
The euro also provided data on consumer confidence in the eurozone. The consumer confidence index in August rose to -15.6 from -17.4 - up to the highest level since July 2011, exceeding economists' expectations at 16.5. The index continues to grow for nine months.
Also today, the published data on the GDP of Germany, which came in line with expectations. The German economy is bad starting the year in the 2nd quarter, rebounded sharply thanks to increased investment and revitalization of consumption. This is evidenced by the data presented in the Bureau of Statistics on Friday. GDP in the 2nd quarter, up 0.7% compared to the previous quarter, a rise of 2.9% year on year. These data support the first official estimates published last week. This means that the German economy in the 2nd quarter was the fastest growing economies of the developed countries. Such data will help Angela Merkel led the conservative coalition, which, according to the latest polls, already confident ahead of competitors in the upcoming September elections.
It is worth noting that the main event was the publication of the European session, the revised GDP data for the UK for the 2nd quarter. According to updated figures from the Office for National Statistics, UK, UK GDP growth in the 2nd quarter was at 0.7% q / q and 1.5% y / y, which was higher than the pre-assessment at the level of 0.6% q / q and 1.4% y / y Today's data suggest that the UK economy is growing at a faster pace than expected by most economists and analysts.
The primary reaction of sterling has been rising. The pair GBP / USD after the release of the GDP has grown, almost reaching the level of $ 1.5640. However, the following reaction sterling was more significant decline, resulting in at least been updated this week against the dollar.
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