USD falls against euro following weak home sales data

Tuesday witnessed a fall in US dollar against euro following a report showing a sharp fall (more than expected) in pending home sales, in the month of July.

Before the report came up, euro was recorded 0.1 percent up at $1.4136 against $1.4104. The dollar was 0.3 percent down at 107.95 yen , in contrast with 107.98 yen its value prior to the report.

Based on a deals signed in the month of July, The National Association of Realtors Pending Home Sales Index was 0.3 percent down as it moved from 89.4 (revised in June) to 86.5. Economic Polls conducted prior to the report anticipated a 1.0 percent of decline in pending home sales

Chief technical analyst at RBC Capital Markets in Toronto, George Davis, said that bit of revenue on long dollar situation is expected to trigger with weak status of Pending Home Sales than expected. He also said that following the bullish sentiment at current scenario, a limited decline in dollar is expected.

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