US existing home sales would likely affect the real estate market and US dollar

US existing home sales would likely affect the real estate market and US dollar.

The U.S. Existing Home Sales report will be published by the National Association of Realtors today at 14:00 GMT, market experts expect considerable shifts in the market. The projected existing home sales stand at 3.97 million. This is up from the 3.95 million recorded in the previous month. Reaching or surpassing this projection may signal slow growth within the secondary housing market and may, in turn trickle down to other economic indicators.

A much broader advance in sales of existing homes could also help boost strength in the U.S. dollar, at least on an international basis. Growth in the housing sector has long represented a much stronger dollar because it demonstrates that the economy is sound and stable. If this continues, then the U.S. dollar may start regaining ground internationally.

Should the sales numbers come in below expectations, that could be a sign of a slowing housing market that might raise questions about broader economic conditions and cause investors to be more cautious, weighing on the U.S. dollar.

While one cannot predict with certainty how the report will end, the data will definitely be of keen interest to market participants as they seek to understand the potential implications on both real estate in the U.S. and the dollar. With external factors always in play, any predictions about long-term trends should be approached with caution.

Bank of England Expected to Take Interest Rate Decision Today

The Bank of England (BoE) will post its latest interest rate decision today at 11:00 GMT. The market may expect a tweaking in the then prevailing interest rate of 5.00%. If so, it should place the British Pound at a higher drive as high interest rates are viewed positively for any currency. This would be an ongoing objective on the part of the central bank to curb inflation, an indicator that fiscal conditions will continue to be tight on the borrowers. However, if they opt for the status quo, this would again express apprehension about growth and could be another cause for concern in the markets, leading to elevated nervousness going forward. Either way, market sentiment is expected to be dictated by expectations and a clear reaction can be expected in the pound and UK stock markets going forward based on what it decides. External influences- Global economic conditions may influence the effects of this decision.