Wednesday, September 2, 2009

Pending Home Sales Spur USD Rise

Yesterday the US currency continued its bullish trend as optimistic U.S manufacturing data and Pending Home Sales figures were released. The U.S. manufacturers expanded in August for the first time in one year and a half, while home sales contract hit a two-year maximum in July, helping helped the economy to recover and thus spurred the demand for the USD. Factories and constructors, which have accounted for half of all the jobs lost since the recession started, may be rising in coming months as home sales are. The U.S dollar jumped against most of its major currency pairs yesterday as sharp losses in global stock markets offset lower than expected U.S. manufacturing data and boosted the greenback's demand. As a result, the USD finished yesterday trading session 150 pips higher against the EUR at the1.4216 level. As market analysis shows the US currency also saw bullishness against the GBP and closed at 1.6155.

The American Petroleum Institute informed yesterday that crude supplies declined 3.19 million barrels last week. A U.S. government report may also show stockpiles reduced. Oil’s gains were supported as Australia said economic growth unexpectedly accelerated in Q2, adding to expansion in Europe`s leading economies such as France and Germany.

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