US Dollar, Japanese Yen Mostly Stronger Ahead of FOMC Decision
Posted 01-27-2010 at 03:56 PM by DailyFX
US Dollar, Japanese Yen Mostly Stronger Ahead of FOMC Decision - Key Comments to Watch For
The US dollar and Japanese yen generally gained across the majors, falling only against the British pound, as risk aversion maintained its hold on the financial markets. US housing data continued to indicate that prices rose in December, but also signaled that demand fell sharply. Indeed, the Commerce Department said new home sales plunged for a second month, this time by 7.6 percent to a record low annual rate of 342,000. Like Monday’s NAR existing home sales report, new home inventories climbed in December to 8.1 months from 7.6 months as median prices jumped 5.2 percent from November to $221,300 from $210.300. All told, the data adds to evidence that the government's tax incentives for homebuyers have helped to stabilize prices. That said, with unemployment rates still in the double-digits, there is a risk that demand will continue to fall further, which could translate into greater supply levels and lower prices once again.
Read more: DailyFX - US Dollar, Japanese Yen Mostly Stronger Ahead of FOMC Decision - Key Comments to Watch For http://www.dailyfx.com/forex/fundame...#ixzz0dqPDe3TF
The US dollar and Japanese yen generally gained across the majors, falling only against the British pound, as risk aversion maintained its hold on the financial markets. US housing data continued to indicate that prices rose in December, but also signaled that demand fell sharply. Indeed, the Commerce Department said new home sales plunged for a second month, this time by 7.6 percent to a record low annual rate of 342,000. Like Monday’s NAR existing home sales report, new home inventories climbed in December to 8.1 months from 7.6 months as median prices jumped 5.2 percent from November to $221,300 from $210.300. All told, the data adds to evidence that the government's tax incentives for homebuyers have helped to stabilize prices. That said, with unemployment rates still in the double-digits, there is a risk that demand will continue to fall further, which could translate into greater supply levels and lower prices once again.
Read more: DailyFX - US Dollar, Japanese Yen Mostly Stronger Ahead of FOMC Decision - Key Comments to Watch For http://www.dailyfx.com/forex/fundame...#ixzz0dqPDe3TF
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