The Euro regained positions. Overview for 27.10.2020

Last night, EURUSD was falling a bit but managed to recover on Tuesday morning.

The major currency pair retreated a little bit yesterday but were able to regain positions. The current quote for the instrument is 1.1830.

The statistics published by the USA were rather weak. The New Home Sales lost 3.5% m/m in September against the expected reading of +2.8% m/m. It is believed that new homes cover about 14% of the entire real estate market, that’s why the current decline is rather significant. The average price added 3.5% y/y. 

However, this decline can be easily explained. In the third quarter of 2020, the effect of low rates and intense interest of Americans in investments in real estate was pretty high but it faded away by the end of September. Apart from that, the number of mortgage approvals plummeted in September and that also may have influenced the indicator. 

At the same time, one should admit that the real estate market is looking quite stable. Both the Housing Starts and the Existing Home Sales skyrocketed up to their 14-year highs in September and may keep the momentum. 

Later today, the USA is scheduled to report on the Durable Goods Orders for September and the Conference Board Consumer Confidence for October. It is not like this data may boost the “greenback” but these numbers may provide insight into what is happening in the country’s economy and finance.