Silence Before The Storm?

Published 07/28/2014, 06:34 AM
Updated 05/14/2017, 06:45 AM

Market movers today

Silence before the storm today as there are no big key figures in an otherwise very busy week. Only release of interest is US pending home sales, which is a good leading indicator for existing home sales. The numbers have been quite strong recently showing a clear rebound in the past two months as also signalled by an improvement in the NAHB housing index. Other housing data are still soft, though, as building permits and new home sales have disappointed. The housing market is one of the areas that Janet Yellen still highlighted as weak as she said 'the housing sector, however, has shown little progress... and readings this year have, overall continued to be disappointing'.

The Fed is thus also likely to still see housing as the weak spot in its statement at the Wednesday meeting, which will only provide a statement (no press conference or projections this time). We expect the tone, though, to be a bit more positive on employment given Janet Yellen's comments in the testimony that the labour market had improved faster than expected.

In addition to the Fed meeting this week we get ISM and non-farm payrolls in the US and euro-area releases for flash CPI for July and ECB bank lending survey.

In Denmark, June's securities statistics and portfolio investment data are scheduled for release.

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