Dollar Smacks Euro Again
Oct 28th, 2008 | By Doug Casey | Category: US Dollar & Forex TradingIn the currency market, the dollar prolonged its upward arc against the euro. Late Monday, the euro was trading at $1.2452 vs. $1.2641 on Friday. For the time being the US dollar is perceived as the safest place for money fleeing just about every other financial sector.
“Fear continues to grip global markets and traders are piling into whatever safe havens they can find,” said James Hughes, of CMC Markets.
The dollar got a boost from a Commerce Department report showing that falling prices may be beginning to have an effect on the housing glut. Sales of new homes rose an estimated 2.7% in September to a seasonally adjusted annual rate of 464,000, in line with economists’ expectations. That was still 33% lower than September of 2007.
In addition, the inventory of unsold homes fell a record 7.3% in September, to 394,000, the lowest level in four years. However, it’s taking more than 9 months after completion for the typical new home to sell, an indication of how far apart supply and demand remain.
Finally, the report noted that the median home’s sales price fell to $218,400. That’s the lowest in four years, and represents a 9.1% drop in the past year.
But, as Marketwatch cautioned: “Government statisticians have low confidence in the monthly report, which is subject to large revisions and sampling and other statistical errors. In most months, the government isn’t sure whether sales rose or fell. The standard error in September, for instance, was plus or minus 12.1%.”
Source: Dollar smacks euro again - New home sales rise as prices fall
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Doug Casey is a contrarian investor, sought-after public speaker and author of several books. His work "Crisis Investing" held the position of # 1 bestseller on the New York Times list for 26 consecutive weeks. Doug's unusual views on the economy - and just about everything else - have gained a huge following in the investment community, and it certainly helps that his stock recommendations of undervalued junior exploration companies have made his subscribers millions. Now in its 27th year, Doug's monthly newsletter, the International Speculator, is one of the most established and esteemed publications on gold, silver and other natural resource investments. Together with the Casey Energy Speculator, it covers a broad range of carefully selected stocks with the very real potential of double- and triple-digit returns within 12 to 24 months.