Forex - EUR/USD climbs on weak U.S. home sales

Published 03/23/2012, 12:22 PM
Updated 03/23/2012, 12:24 PM
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Investing.com - The euro gained against the dollar on Friday after the U.S. Commerce Department reported that new home sales came in weaker than expected in February, stoking fears the that U.S. housing sector, which is already dampening recovery, still faces hurdles.

In U.S. trading on Friday, EUR/USD hit 1.3262, up 0.46%, up from a session low of 1.3191 and off from a high of 1.3293.

The pair was likely to find support at 1.3134, Thursday’s low and resistance at 1.3293, the earlier high.

The Commerce Department reported that new single-family home sales fell 1.6% percent in February to a seasonally adjusted 313,000-unit annual rate in the U.S.

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.

The euro, meanwhile, was up against the pound and up against the yen, with EUR/GBP trading up 0.23% at 0.8363 and EUR/JPY up 0.33% at 109.32.

On Monday, the pair will likely move on news out of Europe, when the German Ifo Business Climate Index hits the wire.

Markets will pay attention to pending home sales due out of the U.S. as well.





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