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US Pending Home Sales Soared in May

Pending home sales grew 6.1% in May compared to the previous month. April's reading was 0.5%, and the average forecast for this month's reading was 1.4%. 


(source: Forexfactory)

Despite the better-than expected data, we are seeing some USD-softness immediately following the data release. The positive housing data is not enough to trump concerns that Q2 growth is going to disappoint after Q1 GDP was revised to an annual rate of -2.9%. This is likely to keep USD pressured heading into Thursday US NFP release.

The USD Index fell below 80.00 continuing off a rounded top. There could be some support around 79.90, but the next key support will be the May-low around 78.90.


(usdx 4h chart, 6/30)