US new home sales 497K – the USD is bullish !

Forex 6598989

This is the monthly report of new single-family home sales, it is produced by the census bureau and contains prices and inventory figures of new homes at the national level.

The value of this month is 497K, higher than expectations, the impact of the new home sales on the forex market is not very direct, if new home sales are high – as today – it may signal an increase in inflation, high inflation may then force the government to raise interest rates in the nearest future in a bid to contain the dollar value, this may affect the dollar’s forex rates indirectly.

As a result of this, fears and rumors may control the market, and buyers are likely to buy the USD just in case or hoping that the fed will raise interest rates in the nearest future…