Monday July 25, 2005 - 10:08:26 GMT
Share This Story
FXCM - www.dailyfx.com
Yen and Euro Remain Range bound in Quiet Trade
A very slow start of the week session in European markets tonight was made even less eventful by the absence of any major economics releases. In Japan the calendar was completely empty, while in Europe German regional CPI was the only eco data scheduled but as of 9:00 GMT was not yet released. The price action reflected the lackadaisical tone of the FX market with EUR/USD first tagging Asian session lows of 1.2030 and then spurting higher to 1.2070. The pair continues to hold the 1.2000 figure but given the thinness of the order flow we are reluctant to attach much meaning to this move.
In the US, the Existing Home Sales figure is the only release on the schedule. Market anticipates that June sales will maintain their brisk 7.13 Million unit pace and that may indeed be the case. However, the latest reports from the field suggest that the picture may not be as rosy going forward. Sacramento Bee reports that, “While the latest sales statistics for June show more of the same - a strong market with rising prices - many agents and brokers say the lagging data don't reflect recent market trends. The number of homes for sale has risen to levels not seen since the late 1990s, they say, and buyer psychology is changing fast. “We are in a shifting situation right now," said broker Pam Petterle, the manager for Prudential California Realty's Sacramento-Tahoe region. "The biggest change is that we have a much greater inventory ... and that's a major change because it shifts the balance from sellers driving this market to a more balanced market. There are not as many multiple offers, and listings are staying on the market longer."
Housing may not show weakness just yet, but should the bubble start to burst as we move into early fall, the ramifications for the dollar will be disastrous. Housing has been the linchpin of US economic growth and according to some estimates has been responsible for the creation of as much as 40% of all new jobs. Any type of downturn in this sector will put enormous pressure on the Fed to pause its “measured” rate hike policy which has been the crux of the dollar rally as more and more carry trade capital flowed into the greenback.
FX Spot Overnight
- EUR trades to a high of 2070
- JPY back to 111.74 as yuan revaluation boost fades
- GBP still below 7400 as terror concern continue to weigh
- CHF at 2945 slowly following the euro
Forex Trading News
Daily Forex Market News
Forex news reports can be found on the forex research
headlines page below. Here you will find real-time forex market news reports
provided by respected contributors of currency trading information. Daily forex
market news, weekly forex research and monthly forex news features can be found
Real-time forex market news reports and features providing
other currency trading information can be accessed by clicking on any of the
headlines below. At the top of the forex blog page you will find the latest
forex trading information. Scroll down the page if you are looking for less
recent currency trading information. Scroll to the bottom of fx blog headlines
and click on the link for past reports on forex. Currency world news reports
from previous years can be found on the left sidebar under "FX Archives."