New home Sales report economic indicator and forex trading

The census bureau of United States publishes an economic indicator related to the sale of new homes. The data is releases monthly on their official website. In the report, the monthly rates are quoted as un-adjusted whereas the yearly rates are quoted as adjusted. The main job of the indicator is to record the overall sale of new homes in the US.
There are several things you need to remember while analyzing the numbers of new home sales. First of all, the data doesn’t include any statistics of the homes that are ready for sale immediately. For example, there may be a house that is being commissioned to be constructed on an existing land which is being owned by the purchaser.
Secondly, the data is taken only at that time when the consumer submits his deposit or signs the sale contract. At this stage, the construction of the house can be in any state.
Thirdly, if the customer or builder cancel’s the sales contact than this data won’t be counted in the sales figure. However, if this house is being sold to another person, still it won’t appear in the sales figure.
This report leaves a noticeable contact on the markets as this can increase the consumption. It can also be very useful when there is any upturn or downturn in the economy which is usually related to the consumer income sensitivity. In a situation where the price of new homes starts to fall for over some months then this can be used as a forerunner for an economic depression.