Major Market Mover: Growth And Housing!

Today is another added day to the ever lasting dollar weakness; providing more numbered facts that the Fed is to further deepen their key rate cuts. Slowdown is projected to have broadened the fall in August, as we have key housing data today in addition to the final GDP reading for the second quarter, as well key inflationary readings.

Despite the fact that the data covers a period prior to the Fed’s implemented cut yet market are merely comprehending a continuation pattern to become a series of cuts on key rates. Today’s August’s New Home Sales are expected to have dropped 5.2% to an annualized rate of 825 thousand, and the slumping sector remains the blister that is the entire economy’s sore of anguished losses. After we have seen a deep drop in Durable goods yesterday the comprehension of a sluggish economic expansion to come and explaining the 50 basis points cut.

Reaching to growth that has soared to 4.0% in the preliminary reading boosted by a leap in exports as robust global growth combined with a weak dollar has flourished a key exit to the slump; with some stability seen in the trade balance figures today’s final GDP reading is expected to be revised slightly down to an annualized rate of 3.8 percent, in addition to solid readings and no revisions to be seen to the personal consumption as well on core levels staying as is at 1.4% and 1.3% respectively.

The dollar is still on a losing streak against majors and weak data still fortifies expectations of and extended track to the downside, if we just look at it from rate differentials angle we see expectations of rate cuts on federal ground and hikes in the 13 nation that has already soared almost 4.2% versus the dollar in the past three months alone.

As we have mentioned earlier the gap in time at hand between fundamental readings and implemented action in real will create this sort of discarding to actual figures and comprehension to expectations and projections to future monetary policy headings; which at last remains to a weak greenback, so stay aboard the broader picture and enjoy the record high as we see the economic developments world wide affected by the happenings on US soil…