Dollar Strengthens a Little, Headline Home Sales Look Good
Aug 26th, 2008 | By Doug Casey | Category: Financial News, US Dollar & Forex TradingIn the currency market, the dollar edged higher against the euro. Late Monday, the euro was trading at $1.4752 vs. $1.4788 on Friday.
“For now, we expect range-trading and consolidation to continue, but we believe that the buck will resume its strengthening trend,” wrote currency strategists at Brown Brothers Harriman.
Matthew Strauss, of RBC Capital Markets, wrote that, “Following the sharp sell-off since mid-July, euro/dollar seems to have entered a new range of $1.4650 to $1.4910. The pair has been trading in this range since mid-August, with only brief and shallow breakouts.”
In the day’s biggest number, the National Association of Realtors reported that sales of existing homes ticked up 3.1% last month to the highest level in five months, exceeding economists’ expectations.
Offsetting that, though, the NAR said July’s inventory of unsold homes on the market rose 3.9% to a record 4.67 million units, representing a supply of 11.2 months based on the current sales pace.
And that may not tell the whole story.
“Inventories are very high relative to sales rates, and would probably be even more so if all those wishing to sell their home actually had the house on the market instead of pulling it off in the face of weak demand and eroding prices,” said Josh Shapiro, chief U.S. economist at MFR Inc.
Source: Dollar Strengthens a Little, Headline Home Sales Look Good, but Inventory of Unsold Homes Grows
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