By: Barbara Zigah
The US Dollar saw broad-based gains after yesterday’s report that existing home sales in May beat analysts’ expectations with a rise of 5% to 5.35 million, jumping from April’s 5.09 million which was itself revised upward. The housing sector is generally viewed as one of the key elements of the US economy and sustained improvement gives the Federal Reserve Bank some breathing space in its policy making.
As reported at 11:24 am (BDT) in London, the EUR/USD was trading at $1.1124, a loss of 1.02% for the Euro which is still under heavy sell pressure as the situation in Greece remains unresolved. The USD/JPY was up, trading at 123.6860 Yen, a gain of 0.24% and floating nearer the top end of the trading range which was bound by 123.3350 Yen at the low end and 123.7850 Yen at the high. The AUD/USD was lower at $0.7721 while the NZD/USD was down to $0.6844.
China’s PMI Fails to Impress
Both of the antipodean currencies lost support after the release of China’s preliminary PMI report for June. Though the reading beat analysts’ consensus at 49.6 against 49.4, it still is below the 50.0 threshold which separates contraction from expansion. Additionally, May’s PMI reading was revised downward to 49.1 from 49.2