FXstreet.com (Barcelona) - The US dollar is reeling against all major currencies on low-volume trading on Christmas Eve with fundamental factors such as dismal U.S. Housing figures combining with traders closing out positions before the year's end to spark a quick reversal of last week's dollar rally.
The EUR/USD has rallied almost 100 pips on the day reaching levels above 1.4400 to hit a fresh intra-week high at 1.4418 so far; 0.55% above its day opening price.
GBP/USD recovery from the 1.5920 support area has extended above 1.6000 with the pair hitting a session high at 1.6020, while the USD/JPY has retreated from a 4-week high at 91.85 to a session low at 91.10.
The USD is also suffering against the smaller dollars. The AUD has extended its daily rally, improving from 87.80 to 88.70, while the CAD has fallen from a week-high of 1.0745 to 3-week low of 1.0455.
According to UFX Bank, The Dollar weakened against most majors after New Home Sales in the US unexpectedly fell last month, coming at 355K vs. 439K expected, indicating the recovery will be slower than first anticipated.