According to the National Association of Realtors, slowed by frustratingly low inventory levels in many parts of the country, existing-home sales lost momentum in July and decreased year-over-year for the first time since November 2015. Only the West region saw a monthly increase in closings in July.

Total existing-home sales, which are completed transactions that include single-family homes, townhomes, condominiums and co-ops, fell 3.2 percent to a seasonally adjusted annual rate of 5.39 million in July from 5.57 million in June. For only the second time in the last 21 months, sales are now below (1.6 percent) a year ago (5.48 million).

EURUSD 1.1100, 1.1160/65/70 (650m), 1.1190 1.1200/05, 1.1270 1.1375 1.1450

USDJPY 98.20 99.95 100.75 101.00 102.25/30

GBPUSD 1.2880 1.3400

AUDUSD 0.7435/40, 0.7450, 0.7460/65

NZDUSD 0.7325 (318m)

USDCHF 0.9715/20 0.9875/80

EURCHF 1.0700 1.0825

U.S. house prices rose 1.2 percent in the second quarter of 2016 according to the Federal Housing Finance Agency (FHFA) House Price Index (HPI). House prices rose 5.6 percent from the second quarter of 2015 to the second quarter of 2016. FHFA's seasonally adjusted monthly index for June was up 0.2 percent from May.

Home prices rose in every state except Vermont between the second quarter of 2015 and the second quarter of 2016. The top five states in annual appreciation were: 1) Oregon 11.7 percent; 2) Washington 10.3 percent; 3) Colorado 10.2 percent; 4) Florida 10.0 percent; and 5) Nevada 9.6 percent.

Among the 100 most populated metropolitan areas in the U.S., annual price increases were greatest in North Port-Sarasota-Bradenton, FL, where prices increased by 15.7 percent. Prices were weakest in Bridgeport-Stamford-Norwalk, CT, where they fell 3.3 percent.

The National Bank of Belgium's business barometer dropped sharply in August, offsetting the improvement of the business climate recorded in the previous two months.

The business climate declined in all branches of activity.

In the manufacturing industry business pessimism showed in all components, but especially as to the assessment of overall order books.

After three consecutive improvements, business climate deteriorated in the business-related services. The recent development of activity was held to be far more negatively and expectations regarding firms' own activity proved to be less bright as well.

In the building industry the loss of confidence was due to the sharp fall in new orders received and to a far more unfavourable assessment of the overall order books

The further decline of confidence in trade is due mainly to the sharp deterioration in the prospects as to employment. Inaddition, demand expectations continued to worsen

The following data was published:

(Time / country / index / period / previous value / forecast)

6:00 Germany GDP q / q (final data) II quarter 0.7% 0.4% 0.4%

6:00 Germany GDP y / y (final data) II quarter 1.5% 3.1% 3.1%

8:30 UK approved applications for mortgage loans on the BBA figures, thousand. July 39.76 37.66 38.5

The dollar rose strongly against the euro, approaching a week high, helped by expectations of Friday's speech by Fed Janet Yellen, which may shed light on the prospects of the Fed's monetary policy. Investors still believe the rate hike this year is unlikely against the backdrop of weak data on production and GDP. However, recent comments by Fed leaders have increased the likelihood of further rate hikes. According to the futures market, the probability of Fed rate increase in September is 18% against 21% the previous day and at the December meeting is estimated at 43.1% versus 41.1% yesterday.

A slight impact on the course of trading has also provided statistics for Germany. The final report, published by the Statistical Office Destatis, showed that the German economy in the 2nd quarter increased by 0.4% compared to the previous three months, when GDP grew by 0.7%. In annual terms, the economy has added 3.1%. The last change (as in the quarterly and on an annual basis) in line with expectations. At the end of the 2nd quarter, German exports increased by 1.2% and imports decreased by 0.1%. Meanwhile, consumer spending rose by 0.2% after rising 0.3% in the 1st quarter.

Later today, the focus will be on housing sales in the secondary market in the US, which may well turn out to be quite strong as yesterday's statistics on sales of new buildings.

The pound has appreciated significantly against the dollar, updating the 3-week high. The catalyst for such dynamics was renewed fall in EUR / GBP. At the same time, data from the British Bankers Association (BBA), showed that the number of approved applications for mortgage loans decreased by the end of July, reaching its lowest level since the beginning of 2015. According to the report, the number of approved mortgage loans decreased in to a level of 37,662 units compared to 39,763 units in June (revised from 40,100). The latter figure was the lowest since January 2015, when the number of mortgage approvals was 36,649 units. In addition, it was reported that the number of permits approved for house purchase was approximately 19% lower than in July 2015. The total volume of mortgage loans amounted was 12.6 billion pounds, an increase of 6% compared with July last year. Meanwhile, consumer loans continued to show an annual growth of more than 6%, reflecting strong retail sales and, in the case of personal loans and overdrafts, favorable interest rates.

EUR / USD: during the European session, the pair fell to $ 1.1255

GBP / USD: during the European session, the pair has risen to $ 1.3248

USD / JPY: during the European session, the pair fell to Y100.08 and then rebounded

EUR/USD

Offers 1.1300 1.1320-25 1.1350-55 1.1380-85 1.1400 1.1425-30 1.1450

Bids 1.1280 1.1250 1.1230 1.1200 1.1185 1.1150 1.1130 1.1100

GBP/USD

Offers 1.3200 1.3230-25 1.3250 1.3280 1.3300 1.3320 1.3350

Bids 1.3160 1.3150 1.3130 1.3100 1.3085 1.3050 1.3025-30 1.3000

EUR/GBP

Offers 0.8580 0.8600 0.8625-30 0.8655-60 0.8685 0.8700

Bids 0.8550 0.8530 0.8500 0.8480 0.8465 0.8450

EUR/JPY

Offers 113.60 113.80 114.00 114.30 114.50 114.75 115.00

Bids 113.00 112.75-80 112.50 112.30 112.00-10

USD/JPY

Offers 100.50 100.85 101.00 101.25-30 101.50 101.75-80 102.00

Bids 100.20 100.00 99.85 99.6599.50 99.30 99.00 98.80 98.50

AUD/USD

Offers 0.7620-25 0.7650-55 0.7680 0.7700 0.7725-30 0.7750-55

Bids 0.7600 0.7585 0.7565 0.7550 0.7500

- South Africa running out of room to borrow

- less nominal wage pressure on prices would help lower CPI

- government has duty to support the unemployed

- underlying inflation "reasonably well contained"

- local institutions could be less hostile to small firms

*via forexlive

- Gross mortgage borrowing of £12.6bn in the month was 6% higher than in July 2015.

- Net mortgage borrowing is 3% higher than a year ago.

- Consumer credit continues to show annual growth of over 6% reflecting strong retail sales and in the case of personal loans and overdrafts favourable interest rates.

Dr Rebecca Harding, BBA Chief Economist, said:

"This month's BBA High Street Banking statistics are the first set of borrowing figures gathered since the EU referendum. The data does not currently suggest borrowing patterns have been significantly affected by the Brexit vote, but it is still early days. Many borrowing decisions will also have been taken before the referendum vote."

This morning, New York crude oil futures for WTI fell by 1.50% to $ 47.37 and Brent oil futures were down -1.18% to $ 49.35 per barrel. Thus, the black gold is trading lower on the background of growth in US oil inventories, which put pressure on the market, along with fears of slowing demand in China. Beijing will take measures in respect of the alleged tax evasion in the petroleum industry. Growing demand in China supported by independent refiners, who have started to import oil in June 2015, received a quota and license from the government. US crude stocks rose last week, according to the American Petroleum Institute, reinforcing concern about the market glut.

EUR/USD 1.1100, 1.1160/65/70 (650m), 1.1190,1.1200/05, 1.1270,1.1375, 1.1450

USD/JPY 98.20,99.95,100.75,101.00,102.25/30

GBP/USD 1.2880,1.3400

AUD/USD 0.7435/40, 0.7450, 0.7460/65

NZD/USD 0.7325 (318m)

USD/CHF 0.9715/20,0.9875/80

EUR/CHF 1.0700, 1.0825

"USD levels keeping us bearish: We continue to expect further 4% weakness in USD on the Fed's broad trade-weighted measure. The DXY has failed to break back into a trend channel formed since June, with the lower end around 94.80. Staying below the 95.30 area should keep the bearish momentum for USD.

One of our favourite ways to play for USD weakness is via EUR. From a technical basis, EURUSD is currently behaving in textbook fashion, and we think shouldn't be met with much resistance when going through the 1.14 level. We still target 1.16 for the end of this quarter. Dovish academic debate on the shape of future monetary policy from the Fed should support our currency views.

The Fed and inflation: To analyse USD we are paying particular attention to the relationship between market expectations for the pace of rate hikes (MSP0KE Index) and the US 5y5y inflation swap. Any hawkish Fed commentary in the coming weeks would lower inflation expectations from their already weak 1.9%Y level. Hawkish commentary could also weaken the equity market, which could then drive the Fed towards a less hawkish tone. The dynamic we describe and commentary this week should show how trapped the Fed is. The Fed's Williams' suggestion to raise rates and the inflation target should flatten the curve and thus weaken USD. Implicitly he wants to lower the terminal real rate by aiming for a higher inflation target. The fact that inflation expectations are not moving higher, currently at 1.9%Y, suggests that the market regards the Williams paper as a theoretical exercise with no practical impact yet. USD should weaken should the higher inflation targeting debate gain substance in Jackson Hole.

What a weak USD means for JPY: We are still expecting USDJPY to reach 97 this quarter with the current Fed-driven dynamic working more on the USD side of this pair. Local risk-supportive ETF purchases by the BoJ are now causing a large divergence between the currency and equity markets. We think this dynamic can continue as long as the BoJ doesn't cut rates, something our economists now expect, and so doesn't have a large negative impact on the Japanese banks. Japan's Kyodo newspaper reporting that an extra JPY 4.5 trillion of spending was to be approved in a second budget had little impact on USDJPY as it appeared to be another case of repackaging old announcements".

Copyright © 2016 Morgan Stanley, eFXnews

At 17:00 GMT the United States will hold an auction of 5-year bonds

EUR/USD

Resistance levels (open interest**, contracts)

$1.1445 (4612)

$1.1388 (4592)

$1.1352 (4407)

Price at time of writing this review: $1.1292

Support levels (open interest**, contracts):

$1.1230 (2397)

$1.1200 (1918)

$1.1165 (2765)

Comments:

- Overall open interest on the CALL options with the expiration date September, 9 is 52875 contracts, with the maximum number of contracts with strike price $1,1250 (4901);

- Overall open interest on the PUT options with the expiration date September, 9 is 57718 contracts, with the maximum number of contracts with strike price $1,1000 (5763);

- The ratio of PUT/CALL was 1.09 versus 1.08 from the previous trading day according to data from August, 23

GBP/USD

Resistance levels (open interest**, contracts)

$1.3404 (2371)

$1.3307 (2864)

$1.3211 (1706)

Price at time of writing this review: $1.3167

Support levels (open interest**, contracts):

$1.3093 (1003)

$1.2996 (2035)

$1.2898 (1943)

Comments:

- Overall open interest on the CALL options with the expiration date September, 9 is 32575 contracts, with the maximum number of contracts with strike price $1,3300 (2864);

- Overall open interest on the PUT options with the expiration date September, 9 is 26355 contracts, with the maximum number of contracts with strike price $1,2800 (2675);

- The ratio of PUT/CALL was 0.81 versus 0.82 from the previous trading day according to data from August, 23

* - The Chicago Mercantile Exchange bulletin (CME) is used for the calculation.

** - Open interest takes into account the total number of option contracts that are open at the moment.

According to rttnews, the total value of construction work done in Australia tumbled a seasonally adjusted 3.7 percent on quarter in the second quarter of 2016, the Australian Bureau of Statistics said on Wednesday - coming in at A$47.419 billion.

That missed forecasts for a decline of 2.0 percent following the 2.6 percent decline in the three months prior.

On a yearly basis, the value of construction work done was down 10.6 percent.

Beef and lamb exports to key markets fell in July, slicing into overall meat exports, Statistics NZ said today. In the month of July 2016, total exports were $4.0 billion and total imports were $4.4 billion.

Overall, meat and edible offal exports in July were down 19 percent on July 2015, to $408 million. The largest fall was in lamb exports, which fell 29 percent in value and 25 percent in quantity.

"The meat export falls this month are partly due to record meat exports this time last year," international statistics senior manager Jason Attewell said. "Meat values in July 2015, off the back of a record high meat season, were 31 percent higher than the average value for the previous five July months."

Dairy exports also fell in July (down $88 million). Milk powder fell $118 million but was partly offset by rises in butter and natural milk constituents. The fall in value of milk powder was price driven, as the quantity rose 0.9 percent.

Germany's economy has continued to grow, but at a slightly slower pace. As the Federal Statistical Office (Destatis) already reported in its first release of 12 August 2016, the gross domestic product (GDP) increased by 0.4% (after price, seasonal and calendar adjustment) in the second quarter of 2016 compared with the first quarter of 2016. At the beginning of 2016, GDP growth had been strong at 0.7%.

A quarter-on-quarter comparison following price, seasonal and calendar adjustment shows that, on the use side of the gross domestic product, positive contributions mainly came from the balance of exports and imports. According to provisional calculations, exports of goods and services rose by a total of 1.2% compared with the first quarter of 2016. Imports declined by 0.1% in the same period. Arithmetically, the balance of exports and imports provided the strongest contribution to GDP growth in the reference period, contributing +0.6 percentage points.

(pare/closed(GMT +3)/change, %)

EUR/USD $1,1307 -0,11%

GBP/USD $1,3200 +0,47%

USD/CHF Chf0,9625 +0,05%

USD/JPY Y100,18 -0,13%

EUR/JPY Y113,28 -0,24%

GBP/JPY Y132,24 +0,35%

AUD/USD $0,7614 -0,22%

NZD/USD $0,7291 +0,03%

USD/CAD C$1,2915 -0,17%