Tuesday, 22 Jun 2010

U.S. Existing Home Sales Lower than Expected

U.S. home sales published earlier came short of expectations at 5.66M, less than 6.17M forecasted. Normally traders would be disappointed by such housing figures, however, markets traded relatively calm after the report was released. Eventually U.S. indices declined further in the last hour before closing time. Major currency pairs showed only modest change as well moving between negative and positive range.

Anticipation for the U.S. Federal Open Market Committee (FOMC) due to start tomorrow could explain the low liquidity witnessed today. Investors would like to hear more about how the U.S. Fed plans to handle with a possibility of economic slow down staring in Europe. EUR/USD is currently 30pips lower than day open price, after NY closing time.