US Existing Home Sales Disappoints – only 4.42 million


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.

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About Author

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 the 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.