FXstreet.com (Barcelona) -U.S. markets have pulled down to levels around zero, after a slightly positive opening, as the unexpected decline on new home sales has spooked investors; in FX markets, the Dollar is pulling down against Euro and Yen.

Dow Jones Industrials and the Nasdaq Index are flat while the S&P Index adds 0.2% one hour after the opening bell.

On the macroeconomic domain, U.S. new home sales drop 11.3% in November, to an annual rate of 355K, instead of the 1.9% advance to around 425K annual rate forecasted by market analysts.

Furthermore, U.S. Personal Income U.S. Personal income has increased at a 0.5% pace in November, the largest increase in the last six months, while personal consumption expenditures have risen 0.5%. The core PCE prices index, a gauge observed by the Fed to assess, future trends on inflation, has remained unchanged on the month, and 1.4% above November 2008,

Dollar trims gains against Euro and Yen

EUR/USD recovery from levels around 1.4250, has extended above 1.4300 level after the release of housing figures, and the Euro has reached a session high at 1.4325, right below Dec 22 high at 1.4330.

USD/JPY reversal from resistance area at 91.85, tested right before U.S. session opening, has extended extended 45 pips lower after the release of U.S. new home sales, to session low at 91.35 so far.

GBP/USD has not been strongly affected as the pair edged up from 1.5940 to 1.5960, yet within the day trading range, from 1.5920 to 1.5980.