Wednesday, 24 Feb 2010

U.S. New Home Sales Report Causes Dollar to Slide

Following a lower then forecasted U.S. New Home Sales Report, as well as a sobering testimony by Fed Chairman Bernanke, USD was able to recoup most of its earlier losses during evening trading largely due to fresh Euro concerns. Rumors began circulating today stating that Greece's financial status could be downgraded within the next month. The Euro took some heavy losses as a result, loosing earlier gains made against the British Pound and U.S. Dollar. Capitalizing on the Euro's troubles, the greenback came out largely unscathed following the afternoon news ahead of a full trading day tomorrow.

Traders will want to pay attention to a speech from the Bank of England Governor, set to be given at 09:30 GMT. The speech will revolve around the current state of the British economy, and could provide valuable clues as to a future interest rate hike. Furthermore, the most recent U.S. unemployment claims, as well as another speech by the Fed Chairman are likely to create a busy trading day.