This evening at 9:00 PM WIB, the United States announced its New Home Sales figures, which significantly exceeded market predictions. The reported increase was 10.9%, a stark contrast to Trading Central’s forecast of a decrease of 4.7%, and also surpassed the previous increase of 2.6%. This remarkable surge reflects the robust demand in the US housing market, signaling positive prospects for the broader economy.
Market reactions to this data release were quite intense. Gold prices faced immediate pressure and dropped significantly following the announcement, fueled by the expectation that a strong US economy might lead the Federal Reserve to maintain elevated interest rates for an extended period. Strong economic signals generally bolster the US dollar while diminishing the appeal of safe-haven assets like Gold, prompting investors to sell off in light of anticipated tighter monetary policy.
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In addition to Gold, major currency pairs such as GBP/USD and EUR/USD also experienced downward pressure. Both currencies weakened against the US dollar after the data release, as demand for the greenback surged. Market sentiment has shifted towards a hawkish outlook regarding future actions by the Federal Reserve, reinforcing the dollar’s position and hindering the recovery of other major currencies. Traders will closely monitor upcoming economic data to verify the trajectory of future monetary policy.
