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Thursday, January 7, 2010

USD Sells Off After Weak Pending Home Sales

North America:
Dollar...Dollar...Dollar....$$$$$!!! :/

The U.S. dollar is ignoring an upbeat factory orders report after a much larger than expected decline in Pending home sales for November. Just moments ago, the National Association of Realtors said that pending home sales fell a sharp 16.0% month-over-month in November, outpacing expectations for a 2.0% decline. Meanwhile, October’s 3.7% pickup was revised up to a 3.9% increase. On an annual basis, sales were up 19.3% despite expectations for a 31.0% increase and October’s 28.6% gain was revise dup to a 28.7% pickup. While not a top tier economic report for the U.S., the news bodes ill for the country’s fragile housing sector. As a consequence, EUR/USD rallied 19 pips to 1.4423 on the news. So far today, EUR/USD has traded in a range of 1.4387 to 1.4484. Short term support lies at 1.4258 with resistance at 1.4536.

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