US existing home sales rise by 2.4% to 5.17 annualized in September, slightly better than expected. This is the highest read in one year, but still off the 2013 high.
This is probably what EUR/USD needed in order to extend its drop. The pair is down to 1.2726. The dollar is stronger also against other currencies, but the euro seems the weakest link.
Sales of existing homes in the US were expected to rise to 5.11 million (annualized) in September after 5.05 million in August (before revisions).
The euro was especially vulnerable towards the release, trading around 1.2740. GBP/USD traded steadily around 1.6150 and is now a bit lower, USD/JPY at 106.70 and is not too excited, USD/CAD was down at around 1.1220 and is now recovering and AUD/USD was struggling with resistance at 0.8820 and is now a bit lower.
Existing, second hand homes, are were most transactions are made, but the sales have a smaller impact than those of new homes. Nevertheless, there is a significant correlation between the housing sector and the overall health of the economy, as we’ve learned very well in the years leading to the crisis and in the crisis itself.
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