The US Dollar has weakened against the Pound and slipped against the Euro after economic data for pending US home sales came in below expectations.
According to the Washington based National Association of Realtors, pending home sales in the US increased by just 0.2%, it was the first recorded gain in six months but was well below economist forecasts for a rise of 1%. On a year by year basis the figure stayed at October’s -1.6%, again below expectations.
The disappointing figure is likely as a result of high mortgage rates and the limited supply of property up for sale. If the US economy continues to show improvement in the jobs sector and sees a rise in consumer confidence than home sales are more likely to rise.
“The combination of bank reluctance to lend and the pop in mortgage rates did throw a monkey wrench in that sector. We’re looking for a solid spring season, but you may not see the big climbs in price until March, April and May,” said the chief economist at Action Economics LLC in an interview with Bloomberg.
The ‘Greenback’s’ losses are expected be limited amid expectations for further stimulus tapering by the Federal Reserve. The U.S. central bank will start reducing its bond-buying stimulus program by USD10 billion a month in January, amid indications of an improving U.S. economy.
Against the Canadian Dollar the ‘Greenback’ is close to a 3-year high due to growing speculation that the nation’s Central Bank will keep interest rates unchanged in 2014. The speculation has caused investors to bet against the currency.
US Dollar (USD) Current Exchange Rates
The US Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.6057
The US Dollar/Euro Exchange Rate is currently in the region of: 0.7244
The US Dollar/ Canadian Dollar Exchange Rate is currently in the region of: 1.0678
The Pound Sterling/US Dollar Exchange Rate is currently in the region of: 1.6506
The Euro/ US Dollar Exchange Rate is currently in the region of: 1.3803
(Correct as of 15:45 pm GMT)
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