The US dollar rose against most major currencies as investors again began to predict the strengthening US currency, when the Federal Reserve will raise interest rates. Investors expect that the improvement in US economic data will force the Fed to raise interest rates from zero to the end of this year, possibly in September.
Sales of new buildings rose sharply by the end of June, while reaching the highest level since February 2007, indicating that the acceleration of the pace of recovery of the housing market.
According to the report the Ministry of Trade, seasonally adjusted new home sales rose in June by 3.2%, to 5.49 million. Units (in annual terms). Economists had expected the growth rate to 5.4 million. We also add the figure for May was revised down - to 5.32 million. 5.35 million. Compared with the same period last year, new home sales rose 9.6%.
Also, today's data showed that the average price of new homes sold in June was $ 236,400, which is 6.5% more than last year. Meanwhile, the ratio of reserves to the level of sales of houses in June was 5.0 months versus 5.1 months in May.
Economists expect growth in sales this summer will be partially supported by customers seeking to enter the market before mortgage rates and housing prices continue to rise further. But they warn that there are still "weak spots", including a lack of buyers in the primary market and the decline of housing starts.
The pound rose against the dollar significantly, approaching to the maximum from July 17, which was associated with the publication of minutes of meeting the expectations of the Central Bank of England. As previously reported, the minutes of the meeting showed that all members of the MPC of the Bank of England voted unanimously for keeping the old policy in July. Despite the drop in inflation to zero in June, the Bank of England Carney said the rate may be increased at the end of the year. The protocol also showed that the decision to raise rates or leave them in the same place, it becomes more balanced for some members of the MPC. Also noted in the report that the recent appreciation of the pound is a factor that can have a direct impact on inflation. Finally, the Greek crisis dissuade some members of the Committee of the need to raise rates in the near vremya..Na Last week, Bank of England Governor Mark Carney hinted following the Central Bank's plans, saying that the decision to raise interest rates from record lows will be seen more closely around the end of 2015 year. Most market players expect the Bank of England will start to raise interest rates gradually from mid-2016.