Continuing its strong run under a haze of nervous trading in equities the USD propelled to higher values against the EUR and GBP. The greenback is starting to approach its spring time values against both the currencies as risk adverse movement has taken hold. The U.S. didn’t release major data on Monday, but today Existing Homes Sales figures are on schedule and investors have been warned that housing sector numbers may prove ugly. The estimated outcome is 4.68m, which would be well below the previous month’s result of 5.37m. Tomorrow New Home Sales and Core Durable Goods Orders statistics will be brought forth. The housing sector remains a critical lynchpin as a barometer for investors because of the impact it has on American consumers.
Part of the entire bubble that developed in the U.S. included the fact that Americans were able to borrow money against the rising values of their property. Those days of merriment are long gone, and with a rather gruesome jobless situation lingering there can be little doubt as to why spending remains on a tight budget. The so-called recovery that the U.S. government has been spouting is now being confronted by many investors and a chagrined public. The results from Wall Street the past two weeks which have been negative and the sudden reemergence of the USD is no coincidence. The greenback has found backing as global sentiment has once again began to lean towards a less than bright outlook. Today and tomorrow’s housing sector releases will have an effect on the marketplace.
Written by bforex.com