- US pending home sales increased 0.3% in September 2014, up from the previous decline of 1%.
- No hope for the Euro buyers, as the German IFO business confidence index fell again this time to register a decline from 104.7 to 103.2.
- German IFO expectations and current assessments also fell to 98.3 and 108.4 respectively.
- Euro zone M3 money supply data released by the European central bank came better than expected and registered an increase of 2.5%, compared to the last time rise of 2.0%.
- UK CBI Distributive Trades Survey released by the Confederation of British Industry remained flat this time at 31, but came better than expected.
- EURUSD pair fell close to the 1.2660 level during the London session where it found buyers.
US Pending Home Sales Data
Earlier during the NY session, the US pending home sales data was released by the National Association of Realtors. The market was expecting the US new pending sales to register a rise of 0.5% in September 2014. However, the outcome was a touch lower, as the pending home sales registered an increase of 0.3%. The US services PMI was also released earlier, which declined from 58.9 to 57.3 whereas the market was only expecting it to fall by 0.9 points.
London Session Recap
There were a couple of releases lined up during the London session, including the German IFO business climate index, Euro zone M3 money supply data and CBI distributive trades survey. The first in line was the German IFO business climate index, which fell to 103.2 from the previous reading of 104.7 in October 2014. The market was expecting a decline of less than 1 point. Similarly, the German IFO expectations declined from the previous reading of 99.3 to 98.3. This was not all, the German IFO current assessments index also fell from 110.5 to 108.4 in October 2014. This caused a sharp downside in the EURUSD pair as it fell from the Intraday high of 1.2713 high to 1.2665 low. The pair lost most of its gain post the data release and traded in the negative territory. There is no denial that the pair is under selling pressure, and unless it gets a reason to climb it might continue to move lower in the near term.
In the UK, the CBI Distributive Trades Survey was released by the Confederation of British Industry. The market was expecting it to decline from the previous reading of 31 to 25. However, there was no decline in the CBI Distributive Trades Survey. The opening statement of the report was very positive, as it mentioned that the “retail sales volumes continued to grow in the year to October, with another strong rise expected in the month ahead, according to the CBI”.
Technically, the EURUSD pair has formed an intraday support around the 1.2660-50 level. A break and close below the same might ignite more losses in the short term. The pair needs a solid reason for more upside, and it looks very tough at this moment.
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UK Nationwide Housing Prices highlighting the value of the houses prices in UK and indicate current movements in the housing market posted an increase of 1% in April, compared to the preceding month.
US dollar continued to weaken against a few currencies and managed to recover some ground against currencies like the Euro and the British Pound
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