Monday, November 28, 2005


Home Sales Numbers Spark US Dollar Selloff

Bloomberg reports on the housing numbers and the US dollar. "The dollar dropped against the euro and the yen after an industry report showed U.S. home sales in October fell more than analysts forecast. The report may damp speculation about how many more times the Federal Reserve will raise interest rates."

"'If the Fed sees the housing market start to soften, that may bring them a little closer' to completing the rate increases, said John Cholakis, a currency trader."

"The dollar's decline against the euro may be limited on speculation the European Central Bank will limit interest-rate increases in coming months, according to a Bloomberg survey. Fifty-one percent of the 55 traders, strategists and investors surveyed on Nov. 23 and Nov. 25 from Sydney to New York advised selling the euro versus the dollar, up from 42 percent a week ago, Bloomberg data show."

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