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Wednesday, 25 September 2013

Most important economic news for today

Most important economic news for today:
Forex News

US New Home Sales, the news will be released at 14:00 server time. Market Impact : High (USD). Previous Score: 394 to -13.4 % m / m, the forecast - 422 to 7.9% m / m

New Home Sales shows the number of houses built with a commitment to sales during the month. The level of new home sales shows trends on the market and, thus, the economic situation and the purchases of consumers household goods and furniture in the future.

The importance of this indicator is that it reflects not only the demand for houses, but the overall economy. People buy a house when estimate their financial position like as very comfortable and confident. Moreover, such a seemingly small amount of data has a huge multiplier effect on the whole economy, and through it on the markets and on your investments.

By monitoring economic data such as new home sales, investors can find a specific investment idea, as well as get a general guide to the portfolio management. Each time when you start building a house, it creates jobs and income, which, in the end, will once again return to the economy. When the house is sold, it brings income to the builder and realtor, and also creates a lot of ways to spend money to the buyer. Refrigerators, dishwashers, dryers, washing machines are just the tip of the iceberg of what you need to buy for your new home. The economic ripple effect is very significant, especially when you realize that every month around the states are sold thousands of homes.

When the recession in the economy has the most profound impact on financial markets, new home sales directly affect stocks and bonds and commodities. More specifically, the trends in sales of primary home seriously affect the status of the builders, mortgage lenders and companies that sell products for home.

Indicator of new home sales is published monthly (around the 25th of the following month) by US Census Bureau. Often the data is revised for the previous few months.

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