Apr 22 2008
Existing Home Sales Will Be Released Today.
Yesterday, the greenback lost ground on what had been a bullish closing to last week’s trading. The US was absent from the day’s economic calendar, which pushed the Dollar to record lows against the Euro in particular. The greenback has struggled to make a steady recovery against its major currency rivals, as bullish trends have proven to be short lived lately. With so many contributing factors to the fate of the dollar and the overall importance it has on the global economy, many investors still believe the greenback has the ability to recover, even with the current state of affairs.
Last week’s unemployment numbers were better than expected along with the Empire State Business Conditions Index, and events for the week to come could contribute to the greenback.
Yesterday, EUR/USD prices soared towards the 1.6000 level. A contributing factor in the rise of the major pair were stock market losses brought about by Bank of America reporting a sharp drop in their income. The bank, currently the second largest in the US reported quarterly losses that sent US stocks to their first losses in 5 days.
Today, we should expect a much more volatile market due to US news events on tap. At 14:00 GMT we expect the Richmond Fed Index, quarterly House Price Index and the Fed TAF auction summary, these will be headlined by the release of Existing Home Sales. The figure is forecasted to fall roughly 1.5% from last month’s number and will show that Existing Home Sales slipped to $4.90M. Last month’s number of $5.03M broke a six-month spell of declining sales, while annual figures from last year still trump this year’s figure by just under 25%. Barring a positive surprise in these results expect to see even more dollar bearishness that could push the EUR/USD to record highs beyond 1.60.
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