Market Impact: High
Existing Home Sales
This report covers the current inventory of pre-existing home sales reported by the National Association of Realtors (NAR). This report has a high impact on the currency market since a positive report indicates a healthy demand for the local currency. When a house is sold, the profit the owner receives from the sale can be used to buy other goods which add up to the total activity or demand for the currency because of increased spending. Although this also contributes to inflation as some homeowners bought their houses on pure speculation hoping to make a quick buck within a short period of time. With this in place, the central bank would tighten its monetary policy to battle the insane appreciation of prices across the board. This action constricts the flow of credit on which ordinary people could use to purchase properties. The report also covers unsold inventory of houses. When numbers of unsold properties are high it signals a red flag on the total activity of the local currency. Since land is illiquid among assets, most of the money will be left stuck with unsold inventory of houses.