Bloomberg Updates

By Vinayak on Wednesday, August 14, 2013 with 0 comments


U.S. July Existing Home Sales Rise 6.5%; Highest Level Since 2009

The National Association of Realtors reported earlier that existing home sales went up 6.5% to 5.39M annual unit rate in July from June’s revised total of 5.06M. Analysts were expecting U.S. existing home sales to rise just 1.6% to 5.15M units

The numbers sparked hopes that the U.S. economy is improving and the greenback shot up after investors were quite confident that the Fed will begin tapering its USD85 billion monthly bond-buying program. This is precisely what happened what happened on Wednesday afternoon.

FOMC Minutes Show Broad Support for Bernanke Tapering Timeline

The Fed said in the minutes of its July policy meeting released yesterday morning that most monetary authorities see a need to begin tapering monthly bond purchases soon. The U.S. dollar appreciated even as the U.S. central bank continued to be vague about whether such a decision would come in September or on in 2013. Therefore, trading was rather choppy.

Right now, the Fed is purchasing $85in bonds monthly to spur recovery. This is QE, a monetary policy tool, that brings borrowing costs down and weakens the dollar.

Category: News

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