Dancing in the Streets following Dollar Housing Help
The US Dollar powered on today with The EURUSD falling to lows of 1.4220 and the USDYEN climbing to 91.80. This movement was a reaction to a very positive US existing home sales figure which surged to 7.4% against an expected 3.3% increasing the prospects of an early US interest rate rise.
This improvement does not seem to take into account that most of this increase was probably derived from the sales of cheap repossessed homes by professional parties. If this is the case, then the future does not bode well for further advancement and is probably an early indication of additional recessionary forces.
The Euro‘s performance, on the other hand, is far more blatant in its exposure to the difficulties that it is currently experiencing. Moody’s cut of Greece’s credit rating places the Euro-zone’s fiscal problems clearly in perspective without hiding behind a barrage of dubious fundamental results.
