Housing Starts

The JPY Housing Starts comes out better than expected at 19.0% from the previous -16.7%. This was forecast at 14.5%. This was the first rise for this series of data since last June hinting at a possible turn around for the second largest world economy of Japan.

Despite this better than expected data, in this thin market because of the US holiday this weekend, the JPY did not move much. The USDJPY dropped a few PIPS while the JPY crosses did not react much at all.

PPI:  1.2%  Versus 0.6% Expected
PPI Ex Food and Energy:  +0.7% Versus 0.2% E
YoY PPI: 9.8%  Versus 9.2% E
YoY PPI ex Food and Energy: 3.5% Versus 3.2 E

Housing Starts 965,000 Versus 960 E
Building Permits; 937,000 Versus 970 E

The report cites that the price for oil used in the report was around $138.74 per barrel.  The current price is significantly lower (ie. $112.00). 

The Housing Starts were better than expected.  However, reports are that new NY City construction codes increased the values.  The report is that ex NYC the starts would have been down 4% versus up 9%. 

The Housing starts rose to 1,066,000 versus 960,000 expected, and Permits rose to 1,091,000 versus 965,000 expected. 

The Housing Starts number comes out at -6.5% from the previous -8.7%.  This data was forecast for a rise to -3.7%.

This data slightly weakened the JPY initially, which had some positive momentum before the data, vs. its counters. 

The French Housing Starts falls to -21.6% from the previous -18.2%.  Housing Permits fall also to -19.9% from -16.3%.

This data brought the EUR down a drop despite better than forecast French Consumer Spending.  This in turn temporarily put a halt to the rallying EURJPY which is close to breaking highs not seen since summer of 2007.  

The JPY Housing Starts comes out at -8.7% from the previous -15.6%.  The forecast was at -11.8%.

The JPY gained strength after this data. 

1,032,000 annualized for Housing Starts expected 939,000
978,000 annualized for Building Permits expected 915,000

Looking at the history below, the levels are still at very low levels but you have to start somewhere.  Of more importance will be Existing Home sales and New Home Sales which will be due out next Friday and the following week.  A rebound in sales and a contraction of supply is needed.  Building new houses when the supply is still high is not always a good idea.

Canada New Motor Vehicle Sales -0.5%.  Expected 0.0%. 

JPY Housing Starts comes out at -5.0% from the previous -5.7%.  This number was forecast at -1.0%.

A falling trend in this number will typically have a negative effect on that particular currency as this indicates an decrease in the number of new residential buildings being built. 

Prior month revised to 1.187 million units.  Numbers are much lower than expectations.