U.S New Home Sales Weaker than Expected at 373K - 26.9.2012

U.S New Home sales slightly decreased by 0.27 per cent in August to 373,000 from the revised 374,000 in July according to the U.S Census Bureau. Economists were expecting 380,000 however the news release was weaker than expected for the housing sector and it did not follow previous month growth of 3.60 per cent. Furthermore, the previous month home sales jumped to the highest point since March 2010 and remain close to that with the possibility of new highs in September. The Federal Reserve expanded its stimulus earlier this month and that could further strengthen sentiment in the housing market. The US dollar against the Swiss franc after the release initially dropped to 0.9398 due to weaker than expected figure however it recovered quickly testing 9-day highs 0.9414.