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US Pending home sales fall 1.6% – dollar edges lower

US pending home sales dropped by 1.6% in August. They were expected to slide by 0.9% after falling by 1.4% last month (revised down from -1.3%). While this is a secondary housing figure, the housing sector’s slide has worried the Fed, and the publication has an impact on currencies.

EUR/USD traded around 1.35, its “magnet” in recent days. USD/JPY continued higher, climbing above 98.80. GBP/USD was on the defensive after a small disappointment in GDP numbers. This small disappointment sends the dollar a bit lower. The moves are limited.

Update: the dollar’s drop against the euro is minimal, and against the yen, we are in the pre-release levels.

Earlier, data was somewhat contradicting: jobless claims dropped to 305K, and reportedly the data wasn’t skewed. However, GDP was not revised to the upside and remained at an annualized level of 2.5% for Q2.

The market’s attention is now focused on Capitol Hill – will there be a government shutdown? What about the debt ceiling?

Here are two different opinions on the impact of the political debacle on the dollar:

Yohay Elam

Yohay Elam

Yohay Elam: Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I've accumulated. After taking a short course about forex. Like many forex traders, I've earned a significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I've worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts.