FXstreet.com (Barcelona) - U.S. stock markets, which had opened the session practically flat, have ticked up after the unexpected increase on U.S. new home sales. The Dollar has declined sharply across the board during European session, reaching multi-month lows against Euro and Yen.

Dow Jones Index adds 0.15%, while the Nasdaq Index advances 0.30% and the S&P Index increases 0.2% in the first hour of trading.

On the macroeconomic domain, U.S. new home sales have increased 6.2% in October to a seasonally adjusted rate of 430,000 units, beating market expectations of a 1.0% decline to 398,00 units.

Somewhat earlier, Orders for expensive goods manufactured in the U.S. have declined 0.6% in October, against market expectations of a 0.5% increase, while Jobless claims declined by 35K to 466K in the week of November 21, while the four-week moving average declined to 496.5K, the lowest level since November 2008.

Furtermore, Consumer spending has increased 0.7% in October, offsetting a 0.7% decline in September, while personal income rose 0.2% for the second consecutive month.

Dollar down to multi-month lows

EUR/USD recovery from yesterday's low at 1.4885 has extended above 1.5065 year to date high, and the Euro has printed a new high at 1.5095 before easing to levels around 1.5060 at the moment of writing.

GBP/USD recovery from 1.6495 low on Tuesday has extended to a fresh intra-week high at 1.6745, although the pair has pulled back below 1.6700, and reaches levels at 1.6665 at the moment of writing.

USD/JPY decline from Monday´s high at 89.20 has extended below 88.55 support during European session and the Dollar has reached a fresh 10-month low at 87.38, approaching key resistance at 96.95/05 (Dec 08/Jan 09 low).