U.S. house price index rises sequentially in May, home prices likely to appreciate in months ahead

The U.S. FHFA purchase-only House Price Index rose in May. On a sequential basis, the index rose 0.2 percent, coming in slightly below consensus expectations of a rise of 0.3 percent. On a year-on-year basis, the home price appreciation dropped 0.2 percentage point to 6.4 percent; however, it continues to be on the higher end of its range in recent years.

Region wise, home prices dropped in East N Central and Middle Atlantic and rose elsewhere. East S Central reported the largest monthly rise at 1.5 percent on a sequential basis. Demand for homes continue to be solid, and inventories are low, especially among existing units. Therefore, home prices are expected to continue to appreciate in months ahead, stated Barclays in a research report.

At 18:00 GMT the FxWirePro's Hourly Strength Index of US Dollar was highly bearish at -114.448. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex