Dollar declines after US housing sales plunge in July
In July, the sales of new US homes unexpectedly declined to its lowest in more than three years. This caused the US dollar to slump against the Euro.
In three days after June's new home purchases, the numbers also went down, The Bloomberg US Dollar Index dropped the first time. The Canadian dollar rebounded from a six week low against the US Dollar. However, the real surged was after Brazil's currency announced a USD60 billion intervention plan that included loans and swaps.
According to a London-based UBS AG senior currency strategist Geoffrey Yu, "Even though new-home sales data haven't really been stellar, I think what we need is for the data to actually turn to the extent that shows the Fed was wrong." "We haven't had a critical mass of negative data yet to derail the Fed. It's a speed bump more than anything," he added.
The Bloomberg US Dollar Index fell by 0.2% to 1,026.15 after it had jumped by 0.2%. Yesterday, it reached 1,031.37, a record high since Aug. 2.
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