U.S. Dollar Rises on Negative Home Sales Report

Markets were affected by pessimism today after a monthly U.S. home sales report was published with rather unexpected negative figures, helping the dollar to gain versus almost all of 16 main traded currencies, as risk averse traders opted for safety this Wednesday in trading markets.
The dollar extended this week’s gains today as risk aversion returned to markets after being absent for several weeks as favorable reports spread out optimism in trading markets worldwide. Today, a U.S. home sales report surprised analysts and investors as figures brought negative numbers in the annual comparison, suggesting that the real estate recovery in the world’s wealthiest nation is losing momentum, which shifted traders’ bets towards the safety provided by the yen and the greenback. Commodity linked currencies like the Canadian dollar and the Norwegian krone, both main oil suppliers for North America and Europe respectively, were the biggest losers as the crude oil rates declined for another day in commodity markets.
After touching record lows versus a number of currencies like the Australian dollar and the Brazilian real, the greenback found grounds to conquer terrain versus other currencies as both the sentiment towards it improved, but also traders are opting for safety once again in a reappearance of turbulent times in trading markets.
EUR/USD traded at 1.4714 as of 19:56 GMT from a previous rate of 1.4810 yesterday. AUD/USD fell to 0.8975 from 0.9162.

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