Monday, 25 Jan 2010

Dollar Falls on Poor Economic Data

The dollar fell against most of its major currencies on Monday after a report said U.S. sales of existing homes dropped much more than forecast last month. The Dollar is currently trading lower against the GBP by nearly 100 pips at 1.6235. It is also trading lower against EUR and CHF.

Data showed existing U.S. home sales fell at the fastest pace on record in December, a bearish sign for the crucial housing market and the global economic recovery. Existing U.S. home sales fell 16.7 % in December after a gain of 7.4 % in November. Analysts had expected home sales to fall 10%.

Tomorrow,forex traders cannot afford to overlook, a batch of data is expected from the leading economies. Both the German Ifo Business Climate and Consumer Confidence will be released at 9:00 GMT and 15:00 GMT respectively, promising an extremely volatile trading day. Traders should take advantage of this unique opportunity and use the volatile market in order to capitalize profits.