Dollar Slumps on Personal Spending & Pending Home Sales

The US dollar extended its drop against most major currencies today as the economic data showed that US consumers were spending less than expected last month and pending home sales slumped heavily.
US personal spending rose 0.4 percent in April, while it was expected to maintain the March rate of growth — 0.5 percent (revised from 0.6 percent). Personal income kept its 0.4 percent rate of increase in April, but the March value was revised downwardly to 0.4 percent from 0.5 percent.
Pending home sales posted a profound slump by 11.6 percent in April, following the 3.5 percent increase in March. Markets counted on decline to 0.9 percent. Lawrence Yun, National Association of Realtors chief economist, thought that the decline can be explained by temporary factors and said:

The pullback in contract signings is disappointing and implies a slower than expected market recovery in upcoming months. The economy hit a soft patch in April from sharply rising oil prices, widespread severe weather with the heaviest precipitation in 20 years, and a sudden rise in unemployment claims.

EUR/USD advanced to 1.4283 from 1.4143 as of 16:01 GMT today. GBP/USD climbed to 1.6492 from 1.6399 and USD/JPY slipped to 80.76 from 81.28.

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