Commonwealth Foreign Exchange

(Reuters) - New single-family home sales rose solidly in April and prices pushed higher, offering further evidence the housing market was turning the corner. The Commerce Department said on Wednesday sales increased 3.3 percent to a seasonally adjusted 343,000-unit annual rate after a 332,000-unit pace in March. The report, whose details were fairly bullish, came on the heels of news on Tuesday that home resales hit a two-year high in April and suggested the housing market recovery was gaining traction. It also highlighted the economy's underlying strength, even though job growth has slowed in recent months. The weak housing market had been the Achilles heel of the economy's recovery from the 2007-09 recession. "It's encouraging. These are signs that we might be forming a bottom in ...

Fundamental Analysis EUR "Germany is holding up the rest of the euro zone”" - Nick Kounis, head of macroeconomic research at ABN Amro Germany helped the Eurozone avoid its second recession in three years. Overall gross domestic product stagnated in the first three months of 2012, compared to the previous quarter, Eurostat data showed on Tuesday. USD "There’s a lot of slack in the economy" - Scott Brown, chief economist at Raymond James & Associates Inc. Inflation in the U.S. stagnated in April, restrained by a decline in energy costs. The core consumer price index, which excludes food and energy costs, rose 0.2 per cent, showed Bureau of Labor Statistics data on Tuesday. GBP "March's UK trade figures showed a bit of an improvement, although the external sector still looks likely to ...

The euro dropped to a four-month low against the U.S. dollar on Tuesday after Greece failed to form a government and said it would hold new elections, raising risks it could eventually exit the euro. The euro fell for a fifth of the last six sessions on chances left-wing politicians opposed to Greece's international bailout could win the June elections. The prospect increased risk aversion and German government bonds rose sharply. Italian and Spanish 10-year yields hit 6 percent on the news. The dollar, bolstered by safe-haven flows, also gained against the yen as investors compared U.S. data releases to those from elsewhere in the world and saw the world's largest economy recovering, albeit at a slow pace. While the failure to form a coalition government in Greece was hardly ...

The euro slid to a fresh four-month low against the dollar on Tuesday after a spokesman for the Greek president said the country will hold new elections after political leaders failed to reach agreement on a coalition government. In a sign of a swift rise in risk aversion, German government bonds rose sharply and Italian 10-year yields hit 6 percent on the news. The dollar, bolstered by safe-haven flows, also gained against the yen as investors compared U.S. data releases to those from elsewhere in the world and saw the world's largest economy on track to recovery, albeit at a slow pace. The Greek news "triggered the (euro's) fall through $1.2800 and it looks like they can't compromise so they will have to hold elections," said Boris Schlossberg, director of FX Research at GFT in Jersey ...

Fundamental Analysis EUR "Industrial producion is a imely reminder that firstquarter GDP will likely show a contracion." - Marin van Vliet, an economist at ING Industrial producion in the Eurozone contracted unexpectedly in March, Eurostat data showed on Monday. Producion fell 0.3 per cent from February, when it rose 0.8 per cent. USD "The fear factor is definitely higher." - Madelynn Matlock, a fund manager at Hunington Asset Advisor U.S. stocks retreated on Monday on a poliical impasse in Greece. GBP "I can’t see even after the next Greek election a government appearing that will be able to do anything else than perhaps manage the Greek exit." - Simon Sole, chief execuive officer of Exclusive Analysis Ltd. U.K. stocks tumbled on Monday. The benchmark FTSE 100 Index fell 1.97%, or ...

The euro slipped to a near four-month low on Monday as political turmoil in Greece highlighted the risk it might exit the euro zone, while worries about slowing Chinese and global growth drove down higher-yielding currencies. Safe-haven currencies, including the dollar and the Japanese yen, rose as coalition talks in Greece hit an impasse on Sunday, increasing the chance of another election. Euro-zone industrial production unexpectedly fell in March, adding to signs the bloc is heading into recession, further fuelling bearish sentiment, while Spain's short-term debt costs rose at auction and its 10-year yields soared. "Beyond the ongoing turmoil in the European financial system, policymakers in Greece are certainly running out of time as they struggle to form a coalition," said David ...

The number of Americans submitting new applications for jobless benefits edged down last week, easing concerns the labor market was deteriorating after April's weak employment growth. While the claims data indicated the economy remained on a moderate growth path, a report from the Commerce Department showing a widening in the trade deficit in March suggested economic growth was much slower in the first quarter than initially believed. New claims for state unemployment benefits slipped 1,000 to a seasonally adjusted 367,000, the Labor Department said on Thursday. The prior week's figure was revised up to 368,000 from the previously reported 365,000. Economists polled by Reuters had forecast claims inching up to 369,000 last week. The four-week moving average for new claims, considered a ...

The euro dropped broadly on Monday after elections in Greece and France cast doubt on politicians' commitment to austerity plans aimed at tackling the euro zone debt crisis. Renewed fears about the stability of the euro zone made the common currency pierce the key psychological level of $1.30 on its way to hitting a three-month low against the dollar in the overnight session. Technical support helped pare losses during New York trade, though the single currency looked likely to remain under pressure in days ahead. The biggest blow to the common currency was the Greek election, in which the two main parties that support the nation's international bailout failed to secure a parliamentary majority. This threw into question the future of the program and potentially the country's membership ...

The euro dropped broadly on Monday after elections in Greece and France cast doubt on politicians' commitment to austerity plans aimed at tackling the euro zone debt crisis. Renewed worries about the stability of the euro zone made the euro pierce the key psychological level of $1.30 on its way to hitting a three-month low against the dollar. The euro also fell to its lowest in 3-1/2 years against the British pound and a 2-1/2 month trough versus the yen, but trade in the overnight session was quiet due to a UK holiday. The biggest blow to the common currency was the Greek election, in which the two main parties that support the nation's international bailout failed to secure a parliamentary majority. This threw into question the future of the program and potentially the country's ...