U.S. Building Permits for December 2008
January 21st, 2009 Posted in Market Movers
Name: Yan
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Tomorrow, January 22, at 13:30 GMT, the U.S Building Permits indicator is expected, and I strongly suggest that you all take a few moments to better understand the consequences of this piece of data.
The first question I’m sure you’re all asking is “what are U.S. Building Permits?” Well the answer is very simple, it’s a survey that measures the annualized number of new residential building permits issued during the previous month. Obtaining a permit is one of the first and most significant steps in constructing a new building.
I’m sure you all have heard about the real-estate bubble in the U.S, and what you should know is that most of the global economic concerns are derived from that exact bubble. This economic crisis has completely inverted global currencies and the forex market is promptly responding to its repercussions.
One of the best ways to monitor the housing sector in the U.S, and keep track of its developments, is to take a little historical view on the Building Permits indicator.
A brief look will tell us that the number of issued building permits in the U.S. is deteriorating consistently since last June. The July publication showed that 1.14M permits were issued in June. And just in order to understand the extent and the severity of the current status, the last report for November showed that merely 0.62M new permits were issued, a depreciation of 45% in six months. As long as the housing sector in the U.S. will continue to decline in such a vertiginous way, the mayhem in the forex market won’t reach its end.
As for the upcoming publication, analysts are forecasting that the downtrend will continue, claiming that only 0.60M permits were issued during December. However, traders should be alert that for the past 5 months, analysts didn’t prove to accurately anticipate the actual result, as the publications turn out to be lower than expected.
Following this indicator will be a great help for you in long-term, as it tends to ensure current USD trends. Furthermore, this might be the first signal for a dramatic change in the leading Dollar pairs and crosses.
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Tags: dollar, housing bubble, real estate bubble, The US Dollar, US Building Permits, US housing sector, USD
