USD is still being stronger after last week Fed gave positive outlook on US economy, saying that labour market is being stable, though there are some inflation concerns left. Since labour market is the most important factor in interest rate hike what we can expect is that Fed is about to raise its interest rates in the first part of 2015.
In the US session Existing Home Sales figures were released. Existing Home Sales fell 6.1% to a seasonally adjusted annual rate of 4.93 million in November from a downwardly-revised 5.25 million in October. Analysts were anticipating rate of 5.21 million. Sales dropped to their lowest annual pace since May (4.91 million) but are above year-over-year levels (up 2.1% from last November) for the second straight month.
As for tomorrow, from Eurozone French Consumer Spending figures will be released. Analysts are predicting 0.2% increase. US session should be more volatile with Durable Goods Orders, Revised Consumer Confidence and New Home Sales data scheduled for a release. Durable Good Orders should rise by 3.0%, while Revised Consumer Confidence figures should show small decline to 93.5 from prelim's 93.8 points. New Home Sales are expected to come at an annual rate of 461,000. Also, Final GDP data is scheduled for a release. 4.3% growth is forecasted, up from Advanced reading of 3.9%.
Figures to watch:
French Consumer Spending (Tuesday 8:45)
Durable Goods Orders/ Core Durable Goods Orders (Tuesday 14:30)
Final GDP (Tuesday 14:30)
Revised UoM Consumer Sentiment (Tuesday 15:55)
New Home Sales (Tuesday 16:00)
