Pound gains vs USD after weak home sales

26th August 2010
Good morning. Sterling has risen against the US Dollar following very weak US home sales data. Against the Euro, there has been little movement. Rates as at 08:30am are as follows:

  • GBP/EUR 1.2213
  • GBP/USD 1.5563
  • GBP/AUD 1.7501
  • GBP/NZD 2.2050
  • GBP/CAD 1.6409
  • GBP/CHF 1.6042
  • GBP/ZAR 11.347
  • GBP/JPY 131.81
  • GBP/NOK 9.7456
  • GBP/HUF 343.88
  • EUR/USD 1.2741

US Home Sales Data

New homes sales in the US fell sharply in July, according to official data, adding to concerns over the weakness of the US economic recovery. The rate of new home sales fell 12.4% in July from a month earlier to an annualised rate of 276,600 a year, the US Commerce Department said.

That makes it the slowest rate since records began in 1963. Although most analysts had expected a fall in sales, the number was even lower than expected. It’s raised fears of a double dip recession, and the dollar weakened as a result making it cheaper to purchase.

The news however could cause jitters in the markets, with investors flocking to the safe haven currencies of the Swiss Franc and US Dollar.

Today’s Data

German Consumer Confidence figures are released at 9am, coinciding with the Money supply release from the EU; expect some movement for GBP/EUR. From the US, markets will be closely watching the jobless and employment data from the US at 1.30pm.

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