Pending home sales rose by 4.5% in the US during January. Expectations stood on a rise of 1.7% after a drop of 4.3% in December. This figure is very volatile.
EUR/USD traded around 1.31 before the release. USD/JPY was above the 91.20 line. In the meantime, Ben Bernanke begins his second day in Washington. — Updates coming —
In his appearance yesterday, Federal Reserve Chairman Ben Bernanke did not say anything really new. Bernanke is experienced in these events. Basically, open ended QE continues. At the same time, the US released great figures, with the new home sales leading the way, enjoying a 15.6% jump.
Earlier, durable goods orders fell by 5.2%, a bit below expectations of -4.8%. Yet core orders rose by 1.9%, above expectations of +0.3%. Also here, the figures are quite volatile.
EUR/USD could not recover due to an unconvincing Italian bond auction. The euro is very sensitive to any Italian news. USD/JPY maintains the lower trading range after the big fall.
More:Â Forex Analysis: EUR/USD Approaches Head-and-Shoulders Downside Target
