Wednesday, 4 February 2009

US dollar loses ground to the euro

The US dollar slipped against the euro yesterday as investors sold the safe haven dollar on the back of a positive US housing report and action by the Federal Reserve aimed at underpinning liquidity amid the global financial crisis.

The National Association of Realtors struck an unexpected note of hope for the devastated US housing market, in a deepening slump since 2006. NAR reported pending home sales rose 6.3 percent in December, confounding most private economists' expectations of a flat reading. In addition, the Federal Reserve announced a six month extension of temporary programmes designed to inject liquidity into the financial markets.

Eurozone Retail Sales and PMI Services data is released this morning, while in the US employment data and MBA Mortgage Applications figures are released this afternoon.

No comments:

Post a Comment