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Dollar rises on unexpectedly strong US New Home Sales

Discussion in 'Forex Daily News & Outlook' started by prav, May 26, 2007.

  1. prav

    prav Moderator
    Staff Member

    Apr 28, 2007
    Likes Received:
    The Dollar firmed on Thursday as data showed US New Home sales in April rose at their fastest pace in 14 years, bolstering the view that the Federal Reserve may not have to cut interest rates this year. The Dollar has rallied over the past month as a raft of robust US economic data has led the market to pare back expectations that the Fed will cut rates this year from the current 5.25%.
    In Europe, the lower-than expected Ifo Business index reading in Germany, still the second-highest on record, did nothing to alter expectations that the European Central Bank will raise rates twice more this year, to 4.25%, and perhaps even again early in 2008.


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