According to Freddie Mac, Mortgage rates have jumped from near-record lows in May to 4.4 percent last week on 30-year fixed loans, amid anticipation that the Fed will slow its purchases of securities backed by real estate later this year. The central bank probably will announce a reduction on Sept. 18, according to a report that accompanies today’s forecast from Washington-based Fannie Mae. Moreover, according to Fannie Mae, the jobless rate probably will decline for the rest of this year to a five-year low of 7 percent in the first quarter of 2014 and Sales of previously owned homes in the U.S. climbed in May to the highest in more than three years and recorded their second-best showing in June with a 5.1 million annualized pace. For all of 2013, sales probably will total 5 million, a gain of 8 percent over 2012.
China will achieve the government’s 7.5 percent growth target this year as the world’s second-biggest economy stabilizes after a two-quarter slowdown, a Bloomberg News survey of economists indicates. The poll of 52 analysts, conducted from Aug. 15 to Aug. 20, points to China maintaining that pace of expansion in 2014. The survey also suggested that the central bank will widen the yuan’s trading band before year end.
New Zealand house-price inflation could slow to half its current rate in the coming year as a result of new mortgage lending restrictions, the Reserve Bank estimates. Lending limits announced by the central bank yesterday could reduce house-price inflation by between 1 percentage point and 4 percentage points in the first year, the RBNZ said in a Regulatory Impact Assessment published on its website. House-price inflation is currently running at 8.1 percent, the fastest since January 2008, according to Quotable Value New Zealand.
EUR/USD: The euro hit 6-month highs against the dollar on Tuesday after a Federal Reserve barometer of U.S. economic activity disappointed investors and reduced expectations held by many that monetary stimulus measures would begin to taper in September. Today, the pair was trading lower at 1.34127 at the time of writing as investors turned cautious on risky assets ahead of the U.S Existing Home Sales which probably increased in July to the highest level in more than three years as growing demand for residential real estate bolsters the expansion, according to economist and before the Fed publish minutes of its July meeting that may offer clues as to whether policy makers will start reduce their $85 billion of monthly bond purchases as soon as their gathering in September. The Federal Open Market Committee will hold its next meeting on Sept. 17-18. Investors should stay focus and wait for the key data and comments in the U.S to come on market to get visibility. The resistance level is at 1.34502 and the support level is at 1.33216.
GBP/USD: The GBP/USD was trading in narrow range of 1.56707 and 1.56489 at the time of writing before the UK release the CBI Industrial Trends Orders, which is forecast to come at -8 compare to the -12 registered previously. A higher than expected reading should be taken as bullish for the GBP and may push the GBP up intra trade. Later in the day, the U.S will release the key risk events; the Existing Home Sales and the FOMC Meeting Minutes. Existing home sales probably increased in July to the highest level in more than three years as growing demand for residential real estate bolsters the expansion, according to economist. While, the Fed will publish minutes of its July meeting that may offer clues as to whether policy makers will start reduce their $85 billion of monthly bond purchases as soon as their gathering in September. The Federal Open Market Committee will hold its next meeting on Sept. 17-18. Investors should adopt a wait and see strategy on the pair. The resistance level is at 1.57214 and the support level is at 1.56047.
