Dollar Heads Up Despite Fundamentals

EUR/USD declined today after a 2-day consolidation on Forex as the traders sold the pair on expectations of the important macroeconomic reports which were to come out later today. Although, the reports weren’t very surprising and were more pro-bullish for EUR/USD, the currency pair continued to remain low even after releases. It’s now trading near 1.4072.
S&P/Case-Shiller home price index continued to rise in a month-to-month comparison in November 2009 and is now standing at 145.49 (seasonally adjusted) compared to 145.14 reported for October. Compared to November 2008 the index was down by 5.32%. The currency traders expected to see 5% drop today.
Consumer confidence rose insignificantly this January in U.S. — it rose from 53.6 to 55.9 but is still quite low. December value was revised from 52.9, while the forecast was at 53.5, so the the revised value even surpassed the initial forecast.
Richmond Fed manufacturing index improved from -4 to -2 in January, which is doubtlessly good in a short-term perspective, but is definitely bad long-term, as the negative index signals that the production is still contracting in the region.
Yesterday we saw a release of the existing home sales data for the month December in U.S. The indicator showed a record drop by -16.7% with the absolute seasonally adjusted annual rate of 5.45 million homes. It was expected to drop only to 5.9 million.

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