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Dollar Falls Back – More Negative News from Housing Sector

May 24th, 2008 | By Doug Casey | Category: US Dollar & Forex Trading

In the currency market, the dollar eased slightly against the euro. Late Friday, the euro was trading at $1.5763 vs. $1.5727 on Thursday.

“Trade was relatively quiet on Friday, as both U.K. and U.S. dealers prepared for a long holiday weekend,” wrote currency analysts at Action Economics.

“This said, the dollar slipped through the N.Y. session, weighed down by still strong oil prices, a slumping stock market, and general concerns over the economic outlook,” they added.

In the day’s only hard number, the National Association of Realtors reported that resales of U.S. houses and condos fell 1% to a seasonally adjusted annualized rate of 4.89 million from 4.94 million in March. Bad enough, but in today’s coulda-been-worse environment, it nearly passed for good since it beat economists’ expectations for a drop to 4.83 million.

“Poor home sales and inventory data continued to weigh on the greenback as they underscore that however shallow this contraction may be, the U.S. is now in its 27th month of the rout in housing, with another possible six to twelve to go,” Nadler wrote.

Source: Dollar Falls Back – More Negative News from Housing Sector


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