Investing.com - Pending home sales in the U.S. fell more than expected in May from the highest level in more than a decade, dampening optimism over the health of the housing sector, industry data showed on Wednesday.
In a report, the National Association of Realtors (NAR) said its pending home sales index fell by a seasonally adjusted 3.7% last month, missing expectations for a decline of 1.1%.
Pending home sales in April advanced 3.9%, whose figure was revised down from a previously reported gain of 5.1%.
Year-on-year, pending home sales increased at annualized rate of 2.4%, missing forecasts for a 4.6% rise and following a gain of 1.8% in the prior month, that was revised down from a 2.9% increase.
However, NAR chief economist Larry Yun noted that the steady increase during the prior three months had put a dent in availability.
"There are simply not enough homes coming onto the market to catch up with demand," he explained.
After the report, EUR/USD was trading at 1.1119 from around 1.1109 ahead of the release of the data, GBP/USD was at 1.3506 from 1.3495 earlier, while USD/JPY was at 102.72 from 102.73 earlier.
The US dollar index, which tracks the greenback against a basket of six major rivals, was at 95.72, compared to 95.78 ahead of the report.
Meanwhile, U.S. stock markets traded higher after the open. The Dow 30 gained 0.81%, the S&P 500 rose 0.91%, while the Nasdaq Composite advanced 1.13%.
Elsewhere, in the commodities market, gold futures traded at $1,324.35 a troy ounce, compared to $1,322.75 ahead of the data, while crude oil traded at $48.51 a barrel from $48.30 earlier.