U.S. markets deepen into losses after dissappointing sales data; Dollar holds gains

By IBTimes Staff Reporter | October 28 2009 10:42 AM

FXstreet.com (Barcelona) - U.S. markets have dipped lower within losses after an unexpected decline on new home sales which has shadowed optimism after the advance on good orders. Dollar remains consolidating after recent advances.

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Dow Jones Industrials Index trades practically at opening levels, while the Nasdaq index losses 0.9%, and the S&P index trades 0.5% down in the first hour of trading.

In regards to macroeconomic indicators, U.S. new home sales have declined 3.6% in September to an annual rate of 402,000 units, to disappointment market analyst who expected a 2.6% advance to an annual rate around 440,000 units.

Somewhat earlier, Durable Goods Orders increased 1.0% in September, somewhat below the 1.5% increase forecasted by market analysts, posting the fourth increase in the last six months.

Dollar holds at higher levels

EUR/USD has been trading between 1.4770 and 1.4800, and after a test to 1.4755, the pair has bounced to reach, briefly to levels above 1.4800although, slammed bu adverse housing figures, the pair has returned below 1.4800.

GBP/USD looks to be gathering momentum and, after having bottomed at 1.6285 low, the Pound advanced to test 1.6400 resistance at the moment of trading. On a bigger picture, the Sterling remains trapped roughly between 16285 and 1.6400.

USD/JPY decline from 92.30 high on Tuesday has found support at 90.90, and the pair has returned above 91.00 and has remained trading between 91.00 t0 91.25, unable to break through none of the sides.

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