US Existing Home Sales disappoint printing only 4.42 million on an annual basis. This exacerbates the falls seen earlier – an intensified risk off behavior. Expectations stood on 5.04 million.
Also last month’s figure was revised to the downside quite sharply: from 4.97 to 4.25 million. So, the fresh figure is actually a gain, but coming on top of a weakened number. These figures come after yesterday’s building permits and housing starts exceeded expectations.
Another disappointing figure from the housing sector is the number of foreclosures that jumped by 21.1% in Q3 2011.
So while new homes are being or will be built at a more encouraging level, the main real estate market in the US is quite asleep: most people buy existing homes.
At the same time, another publication was released. European consumer confidence drops to -21.2 as expected. Last month’s number was -20.4. This is an official number from Eurostat.
EUR/USD has been falling in the aftermath of the huge ECB LTRO operation: The European Central Bank allotted over 489 billion euros to European banks. The first reaction was a rise of the pair, but it then descended once again, on a “sell the fact” behavior”.
For more on the euro, currently back to the 1.30 – 1.3060 range, see the euro dollar forecast.Get the 5 most predictable currency pairs