Wednesday, 23 Dec 2009

EUR Spikes against Dollar after Negative Housing Data

During the last few hours, and due to the disappointing U.S. new home sales data, the EUR/USD pair saw a bullish correction, as the EUR consistently strengthens against the Dollar. Currently the pair is trading at 1.4345, up from an opening day price of 1.4247. This 0.7%% rise came on the heels of negative housing data. It is the first major hiccup American economy and in the dollar's strengthening since the release of the October Non-Farm Payrolls.

Spot crude oil prices were also trading higher during the New York trading session after the release of the mixed economic data. While some numbers offered a bleaker outlook on the economy, the weekly crude oil inventory numbers handily beat market expectations which spurred a renewed interest in spot crude oil buying.

This came as a positive surprise for the spot crude oil market, as the price of spot crude oil rose to a daily high of $76.44, from an opening price of $74.30. Currently spot crude oil is trading at its highest level in 20 days.