Forex - Dollar falls on new home sales data

Published 03/23/2012, 03:41 PM
Updated 03/23/2012, 03:43 PM
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Investing.com - The dollar fell against the world's major currencies on Friday, as government data revealed that new home sales came in much lower than expected in February, sparking concerns that the U.S. economy faces potholes on its road to recovery.
 
In U.S. trading on Friday, the euro was up against the greenback, with EUR/USD gaining 0.48% and trading at 1.3264.

The Commerce Department reported that new single-family home sales fell 1.6% percent to a seasonally adjusted 313,000-unit annual rate in the U.S. last month.
 
January's figures were revised down to 318,000 units from a previous 321,000 reading.
 
The news came fresh on the heels of a National Association of Realtors report that total existing-home sales slipped 0.9% to a seasonally adjusted annual rate of 4.59 million in February.
 
In the U.S., unemployment rates are falling and sectors such as manufacturing have shown signs of improvement, but housing continues to drag on recovery.
 
The news sent the greenback falling against the euro and other currencies.
 
Profit taking played a role as well, as the dollar has posted some strong gains against other currencies, the euro especially.
 
Government auctions have gone smoothly and largely worry free in Europe, which is sparking demand for the European currency.
 
The dollar meanwhile was lower against the pound, with GBP/USD up 0.34% and trading at 1.5875.
 
The greenback was down against the yen, with USD/JPY trading down 0.06% at 82.48, and down against the Swiss franc, with USD/CHF down 0.54% and trading at 0.9085.
 
The greenback was mixed against its cousins in Canada, Australia and New Zealand, with USD/CAD down 0.09% at 0.9986, AUD/USD up 0.67% at 1.0457 and NZD/USD up 0.96% at 0.8171.
 
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.49% at 79.56.
 
On Monday in the U.S., pending home sales data will be released.





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