US indices declined a bit yesterday. Both Dow Jones and S&P 500 fell by 0.3%, while Nasdaq remained unchanged.
The main reason was the decrease in consumer optimism, from 113 points to 112 points. Construction of new houses also slipped, from 950,000 to 850,000.
But US house prices showed a huge 13% rise, which worried both the Fed and the markets. This is because such a massive jump might mean that the economy is overheating, which is very bad news.
Some analysts also said that the dollar's dominance is now over, having declined quite sharply. They said the Fed needs help in pushing the currency up.
As for the euro, the all-time high is now 1.2250, which is significantly lower than the high mid-2008. Furthermore, it cost above 1.2000 from 2004 to 2011, and was trading above 1.2500 in 2008.
Going back to the US economy, it's overall state is actually excellent. Growth is around 6% and unemployment is noticeably lower than in Europe. Wages are also higher.
Forecasts:
The S&P 500 is currently at 4.190 points. It is expected to close around 4.150 - 4.230 points;
The USD index is at 89.70. It is projected to reach 90.30 today.
USD/CAD currently costs 1.2055. It is predicted to hit 1.2150 today.
Conclusion: The US market will grow depending on the reports that will be published on Thursday.