Dollar breaks higher after higher than expected home sales

By IBTimes Staff Reporter | December 22 2009 10:20 AM

FXstreet.com (Barcelona) - The Dollar has shrugged off post-GDP weakness and broke higher against its major rivals, specially Pound and Yen reaching fresh multi -month highs after better than expected existing home sales data.

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GBP/USD decline from 1.6100 session high has extended from levels right at 1.6000 to break below 1.5975 and hit a fresh 2-month low at 1.5955.

USD/JPY has bounced at levels around 91.40 and fuelled by housing data, the pair has rallied past 91.55 session high to reach a fresh 7-week high at 91.80.

EUR/USD post GDP recovery was capped at 1.6315, and the Euro, which was trading around 1.6290 before housing figures were released, has dipped to test 1.4260/65 support area (Dec 18 and 21 lows).

U.S. existing Home sales have increased 7.4%, to an annual rate of 6.54 million units in November, well above market consensus of a 2.5% increase to an annual rate of about 6.30 million units.

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