Some good US data for Q1: the annualized lvel of existing home sales rose to 5.19 in March, significantly better than expected. This is also the best number in a year and a half. The previous figure was marginally revised to the upside: 4.89 million.
The US dollar is slightly stronger in the initial reaction.
The number of existing home sales was expected to reach 5.04 million (annualized) in March from 4.88 last month (before revisions). The majority of sales is of existing, second hand homes.
Towards the publication, EUR/USD traded around 1.0740, GBP/USD at 1.5040, USD/JPY around 119.70, AUD/USD around 0.7777, NZD/USD around the round 0.77 and USD/CAD at 1.2230. All currencies are now retreating against the greenback.
Earlier, the official House Price Index rose by 0.7% in February, as expected.
Data for Q1, including the spring month of March, has been quite disappointing so far. A few losing streaks in US data triggered sell-offs of the greenback. However, after many of these drops, we have seen a resurgence of the USD, as other currencies don’t offer better alternatives.
Later this week we will get new home sales, jobless claims and durable goods orders.
More: USD Index, EUR/USD: Trending Or Turning? – Goldman Sachs
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