FXstreet.com (Córdoba) - A better-than-expected increase in existing home sales and comments about interest rate staying at low levels for some time fueled stocks. The rally in Europe and Wall Street put pressure to the Dollar that fell across the board and rose only against the Yen. Gold posted new record highs above $1,170. The Dow Jones closed at the highest level in 13 months.
The stock index finished at 10,450 with an increase of 1.29%. The Nasdaq rose 1.40%. Equities also jumped in Europe rising more than 2% in average. Crude oil tested the zone of $80 a barrel but later weakened and finished below $78.
Sales of second hand houses have increased well beyond expectations in the U.S. in October, 1.01% up to an annual rate of 6.1 million units, instead of the 5.70 million annual rate expected by market analysts.
The ecPulse.com analysis team affirms: The U.S economy showed that existing home sales inclined in the month of October above expectations along with speculation that the Federal Reserve will not raise its benchmark interest rate any time soon from the current record low levels therefore boosting the appeal of commodities and stocks to investors as they seek other alternative investments to hedge against inflation and profit from the consistent eight-month rally in stock markets that led indices to trade at a 13-month high.
Greenback falls but still in ranges
The Dollar fell across the board through the Asian and European session and during the American recovered a small part of previous losses. EUR/USD tested 1.5000 but failed to break above. The pair remains moving in ranges. GBP/USD rose after falling in the last four sessions. Cable is hovering around 1.6600.
The Yen fell across the board and was among the worst performers of the day. USD/JPY rose to 89.20 but failed to extend the rally and currently is testing levels below 89.00. The pair continues to move at a very slow pace. Currencies tied to commodities jumped against the Dollar favored by an increase in risk appetite and commodities and recovered part of last week losses.