Tuesday, 22 Dec 2009

U.S. Home Sales Report Set to Create Market Voltility

The U.S. Dollar held onto its near record levels against the Yen in trading today following an announcement from the Bank of Japan saying that Japanese interest rates would remain at near zero for the time being. USD/JPY went from 91.19 in trading earlier today to its current level of around 91.50. The Euro rebounded slightly against the Dollar following a worse then expected U.S. GDP report. Currently EUR/USD is trading at 1.4297, an improvement over earlier today, but still far from where it was only a few weeks ago.

All eyes are currently on the U.S. Existing Home Sales Report. Set to be released at 15:00 GMT, the report should give traders an indication of whether recent Dollar gains will hold in trading in the weeks ahead. If the forecasted figure of 6.29 million indeed comes true, this would represent an increase in home sales. Traders could then expect the Dollar to make gains against its major counterparts. If the figure comes in at a substantially lower number, the Euro and Yen could recoup loses made in recent weeks.