The data keeps on coming and housing is in focus once again.
This is probably an area the Fed can merely glance over. There's no big worries about the housing market, no bubbles to monitor, it's not spectacular but steady.
June starts came in higher than expected and looked much better than May only due to the revision down.
New home sales were lower in May yet still trucking along at a decent level, and at the highest for over a year.
US housing
New sales are a good indicator on the state of the economy and a decent number today will keep the 'steady' ship sailing and give no cause for concern to the Fed. We're expecting a small rise to 560m vs 551m prior. Anything up towards the 600's will likely see the buck rise and may help to cement some sort of bottom. While there's noting bubblicious going on with prices, keep an eye on the median sale price anyway, in case there's some news there.
Before New sales we get the Case Shiller HPI which will give us a look at prices. The 20 city y/y number is expected to rise a pip to 5.5%, the US national y/y has no expectation but was last in at 5.03%.
Services PMI follows Case Shiller and consumer confidence follows that. The consumer index could influence markets that have one eye on the FOMC. We're expecting a drop to 96 from the ball busting 98 in June. Another strong headline and sub components will please hawks, while a reversal may mean the June positivity is brushed aside as a one off.
