New U.S. single-family home sales hit a seven-month high in February, reports out on Thursday showed, fueling optimism about the country’s economic momentum despite the higher mortgage rates. According to the Commerce Department, new home sales rose 6.1 percent to a seasonally adjusted annual rate of 592,000 units in February, the highest level since July 2016. This increase was notably more than forecast, as analysts expected a 0.7 percent increase in new home sales.
A postponement of the important healthcare vote on Thursday also renewed optimism that the initiative could pass. The vote will be held later on Friday, and the passing of Trump’s healthcare plan is essential to confirm him as an efficient president. It is expected that the market can rally if the plan is approved, despite criticism from people in all political camps.
The dollar index gained 0.15 percent on Friday morning to trade at 99.911 .DXY after sliding 1.3 percent in the past two weeks. The dollar traded 0.4 percent higher on Friday against the yen, hitting 111.35 after hitting a four-month low on Thursday. The euro was steady at $1.0773.
Oil prices remained just above four-month lows with U.S. WTI crude up 10 cents per barrel to $47.81 and Brent crude up 7 cents per barrel to $50.63.