Dollar Inches Up on Euro
Jul 24th, 2009 | By Doug Casey | Category: US Dollar & Forex TradingIn the currency market, the dollar inched up against the euro. Late Thursday, the euro was trading at $1.4194 vs. $1.4214 on Tuesday.
On the economic front, the National Association of Realtors (NAR) reported yesterday that resales of U.S. single-family homes and condos climbed 3.6% in June to a seasonally adjusted annual rate of 4.89 million, the highest level since October.
Meanwhile, the inventory of unsold homes on the market fell 0.7% to 3.82 million in June. This is reportedly a 9.4-month supply at the June sales pace, down from 9.8 months in May.
“The housing market appears to be healing,” said Lawrence Yun, the NAR’s chief economist. Yun said that inventories would have to be at a seven-month supply to get price stabilization. He said prices could stabilize “around the end of the year.”
The NAR report sparked a debate about whether the housing market has really turned a corner.
Some say yes, some say no, and some are on the fence.
“Housing may no longer be the weakest link,” said Joel Naroff, president of Naroff Economic Advisors.
“The economy is still losing jobs, credit is still tight, mortgage rates are a bit higher than they were in the second quarter, and the tax credit for first time homebuyers, which is boosting sales, expires at the end of November,” said Patrick Newport, U.S. economist at IHS Global Insight.
“The acid test is whether sales can push on beyond the pre-Lehman trend of just under five million over the next few months,” said Ian Shepherdson, chief U.S. economist at High Frequency Economics.
Source: Dollar Inches Up on Euro
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